Glassnode interpreted the flow of spot Bitcoin ETF and the possible effects of the upcoming Bitcoin (BTC) halving.
The latest report transmitted by the on-chain analysis platform Glassnode included thoughts on how Bitcoin might behave in the coming days.
Analysts pointed out that, unlike previous halving cycles, this time 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.
The report also emphasized that as Bitcoin halving approaches, volatility is inevitably expected to increase, while spot Bitcoin ETF purchases could serve as a buffer against this volatility. Investors were advised to closely monitor activity related to spot Bitcoin ETFs and take precautions against possible volatility to prepare for this process.
This report presented by Glassnode also noted that, in the event of demand remaining the same, the reduced production accompanying the halving could carry the price upwards:
However, current market conditions are different from historical norms. As the halving approaches, the impact of newly mined and circulated bitcoins becomes less significant compared to the increasing demand from ETFs.
