ETFs Have Introduced Different Dynamics To The Bitcoin Market – Analyst

• Marcin Miłosierny thinks new dynamics are evolving for Bitcoin in the developing bull cycle.
• According to Miłosierny, the entrance of ETFs is impacting the Bitcoin market significantly
• Miłosierny believes the buying power of ETFs will overshadow the supply squeeze effect of Bitcoin halving.

Glassnode crypto analyst Marcin Miłosierny has highlighted the evolving dynamics of the Bitcoin market in the developing bull cycle. According to Miłosierny, the entrance of ETFs is impacting the Bitcoin market significantly with a potential adjustment to the historical effect of Bitcoin halving.

In a recently posted analysis, the crypto analyst noted that the significant buying power of ETFs will overshadow the traditional supply squeeze effect expected from the halving. Miłosierny believes the ETF-induced dynamics demand a response from traders. He thinks Bitcoin traders need to balance the historical impact of halvings with the contemporary ETFs’ influence on BTC availability and price during the upcoming cycle.

Considering recent developments, Miłosierny believes the Bitcoin market is entering a stage where long-term holders (LTHs) would exert more influence in BTC supply dynamics. He thinks traders should monitor the Long-Term Holder Market Inflation Rate for accurate market prediction. According to the Glassnode analyst, doing so would enable the traders to anticipate market shifts and adjust their strategies accordingly.

One factor Miłosierny considered essential is Bitcoin reaching an all-time high (ATH) before the halving. He thinks this development presents a new scenario, even though the cycle’s progression mirrors past trends if aligned from the April 2021 ATH. The analyst believes the calming influence of ETFs on corrections suggests stability. However, he noted that a potential decrease in ETF demand could amplify market fluctuations.

The newly launched ETFs influenced Bitcoin’s latest rally, pushing the flagship crypto up by over 90% in less than two months. BTC broke above multiple resistances to reach a new ATH of $73,794 before embarking on a retracement due to ETF outflows. 

Bitcoin traded for $64,357 at the time of writing, after a 17% retracement from the ATH, according to data from TradingView . Users expect the rally to continue after the upcoming Bitcoin halving, which would create a supply squeeze for the top cryptocurrency.