Did Strong Bitcoin ETF Demand Kill Halving's Potential Bullish Rally?

The much stronger-than-expected inflows into the spot bitcoin exchange-traded funds (ETFs) have already caused concerns about a supply shock in the bitcoin market, potentially taking away some of the impacts of the halving.

Bitcoin's halving - which is often seen as a bullish catalyst for the price - may not be as positive as markets may think, thanks to the approval of spot exchange-traded funds (ETF).

• Bitcoin's upcoming halving might not have as much of an impact on the price of bitcoin as seen in previous cycles, experts predict.
• This is because the spot bitcoin exchange-traded funds (ETFs) have already pushed bitcoin to new highs as pressure on supply strengthened.
• Nevertheless, the long-term effects on both the price of bitcoin and subsequently flows into the ETFs will be positive.

Bitcoin's (BTC) halving - which is often seen as a bullish catalyst for the price - may not be as positive as the market thinks, thanks to the approval of spot exchange-traded funds (ETF).
Halving, which occurs every four years, cuts bitcoin's supply growth by half, historically causing upward pressure on the price of the largest digital asset. The previous halving cycles pushed bitcoin to new highs, and this time, strong demand from the spot ETF may add even more fuel to the rally.
“If we look at demand generally since the ETFs have launched, it has created tremendous supply shock already,” said Brian Dixon, CEO of investment firm Off the Chain Capital. “Once the halving occurs, and that supply is further reduced, it's only logical to think that the price will appreciate.”