Market dynamics introduced by Bitcoin ETFs' demand may play a role in making this halving unique.
A slowdown in purchases of Bitcoin exchange-traded funds (ETFs) combined with a high volume of unrealized gains from traders could lead to bearish pressure on Bitcoin (BTC) price following the halving event.
According to Julio Moreno, head of Research at CryptoQuant, traders’ unrealized profits from Bitcoin’s recent rally are building up a selling pressure. An eventual slowdown in the purchase of ETFs in the coming months could result in further pressure on BTC prices.
CryptoQuant’s Net Unrealized Profit and Loss (NUPL) indicator supports the analysis. The indicator’s warning sign is the 0.7 mark, indicating that Bitcoin investors may be ready to take profits, further driving prices down and increasing selling pressure.
