Bitcoin is set for a price upturn post-halving, driven by diminished selling pressure and increasing interest in Bitcoin-centric applications. Grayscale's analysis underscores that Ordinals have rejuvenated Bitcoin's on-chain activities, enhancing its fundamentals alongside the supportive demand from spot Bitcoin ETFs.

The firm emphasizes that Bitcoin's technical fundamentals and applications have notably expanded over the past year, making it a stronger asset in anticipation of the halving event, which historically signals bullish market cycles. Researcher Michael Zhao notes, "The unique fundamental shifts and market structure enhancements set this halving apart, marking Bitcoin's evolution beyond 'digital gold.'"

The halving event, a built-in network feature designed to cut mining rewards in half, aims to reduce inflationary pressure on Bitcoin, often preceding significant market rallies. The introduction of Ordinals and BRC-20 tokens has sparked a resurgence in on-chain activity, generating significant transaction fees and presenting new income avenues for miners.

Zhao highlights that the BRC-20 standard and Ordinals Protocol have not only revitalized on-chain activity but also attracted developer interest and innovation, contributing to the network's dynamism and potential for increased transaction fees.