New research conducted by market intelligence firm Glassnode suggests that as the Bitcoin (BTC) halving approaches, financial institutions and savvy investors are impacting the price of the cryptocurrency.

Glassnode’s recent article highlights that during its first halving, BTC experienced a 1,000% surge in price. This was followed by a 200% increase during the second halving and a 600% rise during the third. The upcoming halving is anticipated to occur around April 19th and will result in a halving of BTC miners’ rewards.

Glassnode explains that these significant price increases demonstrate the potential for the halving event to have a substantial impact on supply and demand dynamics, thus influencing market pricing. By analyzing historical patterns, investors can gain valuable insights for predicting potential market movements and developing investment strategies accordingly.

In the past, halving events have driven up the price of BTC due to the reduction in newly issued supply, which subsequently boosts demand. However, Glassnode believes that this time, BTC’s price may experience volatility due to three key factors.

Firstly, the involvement of institutional investors through ETFs and the changing activities of long-term investors and smart money entities complicates the dynamics surrounding the halving. This suggests that the market response to the upcoming halving will be more nuanced.

Secondly, Glassnode emphasizes the importance of monitoring ETF inflows and outflows. A decrease in ETF purchases could indicate an imminent market downturn.

Lastly, increased selling by long-term holders may indicate that the market is nearing its peak, potentially impacting overall market stability and price levels.

Glassnode advises traders to be cautious of potential sell-the-news effects surrounding the halving event and to consider making strategic adjustments to their positions to navigate the expected volatility.

At the time of writing, Bitcoin is trading at $60,578, representing a 2.17% decrease in the last 24 hours.