Glassnode analyzed the spot Bitcoin ETF flows and the possible effects of the upcoming Bitcoin (BTC) halving.
In the latest report conveyed by the on-chain analysis platform Glassnode, thoughts were expressed on how Bitcoin could behave in the coming days.
Unlike previous halving cycles, analysts noted that the influence of spot Bitcoin Exchange-Traded Funds (ETFs) has emerged as a new and important parameter, signaling the dynamics of long-term investors and supply mathematics.
While it was expressed that volatility would inevitably increase as the Bitcoin halving approaches, it was emphasized that spot Bitcoin ETF purchases could serve as a buffer to this volatility. Investors were advised to prepare for this process by closely monitoring activities related to spot Bitcoin ETFs and taking precautions against possible volatility.
This report offered by Glassnode also noted that the reduced supply due to halving, in the event of demand remaining the same, could push the price upward:
However, current market conditions are different from historical norms. As the halving approaches, the effect of newly minted and circulating bitcoins is becoming less significant compared to the increased demand from ETFs.
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