GBTC - IBIT: BTC Supply Is Shrinking
2024-04-10 23:30:00 ET
Summary
- BlackRock iShares Bitcoin Trust is well-positioned for the upcoming Bitcoin halving, which is expected to increase the price of Bitcoin.
- IBIT has seen significant inflows since its launch, indicating strong demand for Bitcoin and potential for price growth.
- Historical data shows that Bitcoin has experienced significant price surges after previous halving events, suggesting a bullish market ahead.
Investment Thesis
In my view, the BlackRock iShares Bitcoin Trust ( IBIT ) is well-positioned for the upcoming Bitcoin halving, presenting a strong buy case. IBIT is an ETF (exchange-traded fund) which is designed to track the current price of Bitcoin. With the Bitcoin halving approaching, likely to be around April 20th , the daily Bitcoin supply created is expected to reduce from 900 to 450 BTC . This reduction is predicted to affect the supply-demand dynamics of Bitcoin, potentially increasing the price. When looking into the past, this prediction matches. Historical data concludes that after halving events, significant price surges are often observed, with Bitcoin rallying over 30% in the weeks leading up to halving events....
IBIT: BTC Supply Is Shrinking