A decrease in inflows to spot Bitcoin exchange-traded funds (ETFs) alongside a significant volume of unrealized gains among traders could potentially exert bearish pressure on Bitcoin prices following the upcoming halving event.

Julio Moreno, head of research at CryptoQuant, highlighted that unrealized profits from Bitcoin's recent surge are contributing to selling pressure. Further slowing of inflows to spot Bitcoin ETFs in the coming months might exacerbate this pressure on Bitcoin prices.

CryptoQuant's net unrealized profit and loss (NUPL) indicator aligns with this analysis, signaling a warning at the 0.7 mark, suggesting that Bitcoin investors may opt to realize profits, further driving prices downward and intensifying selling pressure.

On March 17, the NUPL indicator reached 0.606, marking a 0.41% increase from the previous 24 hours, despite recent corrections in BTC prices.

Regarding potential price-depressing factors, Moreno pointed out two key elements: a slowdown in ETF Bitcoin purchases and traders holding unrealized profits at high levels, which may prompt them to sell and secure profits.

Bitcoin ETFs experienced one of their lowest net inflow days on March 14, with just $132 million in net activity, representing their lowest level in eight trading sessions and an 80% decline from the previous days.

However, any potential downward trend may not be as severe as seen in previous bear markets, as institutional investors typically engage in portfolio rebalancing strategies, which could mitigate volatility rather than exacerbate it, according to James Butterfill, head of Research at CoinShares.

Bitcoin ETFs have seen significant demand, surpassing $12 billion in cumulative net inflows on March 15, with expectations of further demand as brokerage firms expedite due diligence to offer clients Bitcoin ETFs.

Miners, on the other hand, are bracing for the impact of the halving, Bitcoin's deflationary mechanism, as it reduces the reward for mining new blocks by 50%, from 6.25 BTC to 3.125 BTC per block.

While the cost of mining remains unchanged or may even rise post-halving as miners upgrade operations to maintain profitability, concerns surround miner selling behavior. Historically, miners have increased selling before halving events to maximize profits, with data from CryptoQuant indicating miner reserves at their lowest level in two years, with 1.81 million Bitcoin held by miners on March 15.

The Bitcoin halving occurs every four years, with the next anticipated around April 19, 2024.