The anticipation of reduced demand from ETFs, coupled with traditional halving psychology, could trigger a period of heightened volatility, with traders likely to adjust their positions in response to early signs of a shift.
This expectation hinges on several factors, including the continued influence of ETFs on the market. While their buying activity has provided substantial support for Bitcoin's price, there is a consensus that these inflows are not sustainable indefinitely. Should ETF flows begin to slow or reverse leading up to the halving, we may see a compounded effect on the market. The anticipation of reduced demand from ETFs, coupled with traditional halving psychology, could trigger a period of heightened volatility, with traders likely to adjust their positions in response to early signs of a shift.