About two months from now, in mid-April 2024, Bitcoin will undergo a massive change, halving its reward for miners that successfully complete a block. Known as "halving" or "the halvening," the event is often seen as bullish for Bitcoin, as several halvings in the past have been followed by sustained increases in the price of Bitcoin. 

However, Grayscale analysts warn, there are ways to explain those price bumps outside of simple stock and flow analysis. After all, "other cryptocurrencies with similar halving mechanisms, such as Litecoin... [have] not consistently seen price appreciation post-halving. This suggests that while scarcity does sometimes influence price, other factors also play a role," the analysts wrote, citing broader macroeconomic conditions as one factor. 

…