The Bull Market in Bitcoin May Pause Until the Halving Event: Here’s Why!

• Following the recent approval of Bitcoin ETFs, the price of BTC has exhibited a calm performance.
• According to the latest analyses provided by Santiment, a notable trend emerged with the expectation of Bitcoin Exchange-Traded Funds (ETFs) approved last Wednesday.
• Data provided by GreeksLive indicates that the focus of the financial market is currently revolving around the trading of US stock ETFs and their impact on cryptocurrency prices.

The stagnation observed in the price of BTC after the approval of Bitcoin ETFs has raised concerns about the bull market: What happens next?

Stagnation in Bitcoin Price After Bitcoin ETFs

Following the recent approval of Bitcoin ETFs, the price of BTC has exhibited a calm performance, generally hovering around $42,000. Although it briefly surged to $48,000 during the ETF approvals, subsequent selling pressure had a significant impact on the price of Bitcoin.

According to the recent analyses provided by on-chain data provider Santiment, a notable trend emerged with the expectation of Bitcoin Exchange-Traded Funds (ETFs) approved last Wednesday. Large Bitcoin wallets actively moved old coins at a faster pace, resulting in a significant decrease in the average age of coins in these wallets.

While there are slight indications that this movement of old coins may have temporarily ended, it is believed that this could bring a potential pause in the ongoing bull cycle in the cryptocurrency market.

However, Santiment suggests that the actions of a few large whales could rejuvenate the market, leading to a further decrease in the average dollar investment age of Bitcoin and potentially testing levels around $45,000 again and maybe reaching $50,000.

Analysis of Option Data and ETF Impact

Data provided by GreeksLive reveals that the current focus of the financial market is on the trading of US stock ETFs and their impact on cryptocurrency prices. Examining today’s block transactions, an impressive amount of $120 million is observed trading in large put options, constituting 16% of the total—remarkably high volume compared to typical trading days.

Among individual block transactions exceeding $5 million, a noticeable trend towards short selling in short-term put options became apparent. Concurrently, smaller orders tended to lean towards buying short-term put options.

Despite reasonable concerns about the current outlook, there is a growing sentiment among large traders that the market may have found stability, offering a glimmer of hope amid the current uncertainties.

While the immediate impact of Bitcoin ETF approval may not be visible, according to several market analysts, it will hold significant long-term importance. Popular crypto analyst Michael van de Poppe stated, “Bitcoin ETF provided negative returns from the start. Bitcoin ETF saw a massive net inflow in the first few days. Over $600 million in the first few days. The real impact of the ETF will be shown in the next few years. It’s a mega bull event.”