Bitcoin Halving: The Road to a Parabolic Bull Run

Bitcoin Halving 2024: Transformative Supply Squeeze Predicted by 21Shares

The upcoming Bitcoin halving, combined with soaring ETF adoption and holder confidence, is sculpting a bullish scenario, potentially triggering a market-transforming supply squeeze.

Why the Halving Positions Bitcoin in a Parabolic Bull Run

Unlike previous cycles, this year signals a departure, fueled by growing institutional adoption and expanding use cases, painting a bullish picture for Bitcoin.

The approval and success of spot Bitcoin exchange-traded funds (ETFs) have marked a historic milestone in the crypto's journey. Since their inception, Bitcoin has witnessed a substantial 60% price growth, with trading volumes reaching unprecedented highs.

The steadfast confidence of long-term Bitcoin holders, despite the market's volatility, also exemplifies the unshakeable belief in Bitcoin's value proposition.

Bitcoin ETF Holdings

The influx of institutional interest in Bitcoin ETFs has attracted over $30 billion in assets under management in two months. This surge in demand is also reflected by a record-breaking $1 billion of inflows in a single day.

Bitcoin Supply Held by Long-Term Holders

The supply held by these long-term investors remains at approximately 70% of the total circulating supply. Meanwhile, the supply held by short-term holders has surged by over 33%, further constraining available supply and hinting at an impending price surge.

If this trend persists, Bitcoin's supply side will increasingly become illiquid, laying the groundwork for a supply squeeze and the potential onset of a parabolic bull run, analysts at 21Shares concluded.

Conclusion

While acknowledging Bitcoin's inherent volatility, the current environment appears primed for a significant upward trajectory as the 2024 halving approaches. This cycle may differ from its predecessors and could usher in a new era of institutional adoption and financial recognition.