Grayscale’s analysis suggests that fundamental changes to the demand and supply of Bitcoin are likely to have a more significant impact on the cryptocurrency’s prices after the upcoming halving.

In the past, halving events have led to periods of price appreciation, but this time, the rise of exchange-traded funds (ETFs) will also play a role in Bitcoin’s performance.

According to the report, Bitcoin’s market structure is currently favorable for price growth after the halving. The current mining rate of 6.25 Bitcoin per block translates to about $14 billion annually, based on the current price of $43,000.

This means that in order to maintain the current prices, there must be a buy pressure of $14 billion within the same period. However, after the halving, this requirement will decrease by half, with only 3.125 Bitcoin mined per block, resulting in an annual decrease of buy pressure to $7 billion.

This decrease in sell pressure will come from Bitcoin miners, as the halving event reduces the block reward by half every four years.

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