Effects of the Bitcoin halving are already apparent, and that's huge for BTC's bull case

Just over two weeks ago, Bitcoin experienced its third block reward reduction.

The "Halving," as the event has been branded, halves the rewards miners get for processing BTC transactions from 12.5 to 6.25 coins per block.

As these rewards constitute the inflation of the cryptocurrency, a halving is notable: it decreases the inflation rate of the Bitcoin monetary base by half.

Importantly to the Bitcoin bull case, the effects of the halving are already having an effect on the underlying market.

Grayscale alone has accumulated more Bitcoin than miners since the halving.

According to technology analyst Kevin Rooke, there's been a concerted effort by Wall Street to accumulate BTC over the past few weeks and months.

He cited his analysis, indicating that since the block reward halving on May 11, digital asset fund manager Grayscale Investments has accumulated 18,910 BTC while miners have mined 12,337 BTC. That's to say, one firm in the BTC market working on behalf of its mostly institutional clients has more than a 50 percent lead over the inflation of the asset.

Theoretically, if the halving had not happened and Rooke did the same analysis, miners would have mined around 35 percent more coins than Grayscale accumulated.

In decreasing the rewards miners get by 50 percent while demand increases, the supply-demand dynamic of the Bitcoin market gets dramatically skewed in favor of bulls.

Although Grayscale services mostly hedge funds according to its marketing materials, it may not be fair to say that all of Wall Street is bullish on Bitcoin and cryptocurrency.