Goldman Sachs has made a bold prediction, foreseeing a potential market earthquake that could result in pension funds selling approximately $32 billion worth of stocks by the end of the quarter in order to rebalance their portfolios. This forecast comes as stocks are set to complete another strong quarter. Chinese cryptocurrency analyst, Jinze, who previously worked at Binance Research, has cautioned that this could have implications for the Bitcoin Spot ETF market. Jinze believes that the quarter-end rebalancing could generate significant demand for the Bitcoin ETF, which was only launched in January. He also suggests that next week may witness strong inflows as funds that want to invest have not yet had time to add the Bitcoin ETF to their portfolios. Rebasing typically involves selling high-performing assets and buying those that have lost value. The actual rebalancing transactions are expected to take place in early April, thus the Bitcoin ETF has not seen any inflows resulting from rebalancing in the past two weeks. Coinciding with these developments, there has been a noteworthy 8% decline in the number of Bitcoins held on exchanges since May 2023, resulting in a supply squeeze. Data from Glassnode shows that the total share of BTC held on exchanges now stands at around 12% of the total BTC in circulation, marking the lowest level in the last five years. The move away from exchanges is generally interpreted as a bullish indicator and signifies a preference for holding rather than selling. As always, it is essential to mention that this information is not intended as investment advice.
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Goldman Sachs Calls for $32 Billion Market Earthquake, Chinese Cryptocurrency Analyst Cautions Next Week for Bitcoin
