Goldman Sachs has forecasted that pension funds are likely to sell approximately $32 billion in stocks by the end of the quarter in order to restructure their investment portfolios. The potential massive selloff of stocks comes as the stock market is on track to complete a successful quarter.

Jinze, a former Binance Research analyst, expressed concerns about the impact of this quarter-end rebalancing on the Bitcoin Spot ETF market. Large funds rebalancing their portfolios has already caused selling pressure on stocks that previously saw significant gains, according to Jinze.

Jinze also pointed out that this rebalancing could generate substantial demand for the Bitcoin ETF, especially since its launch in January. The lack of time for funds to adjust their portfolio allocation may result in a surge of investments in the following week.

Despite the anticipated effect on Bitcoin, actual rebalancing activities are scheduled for early April. Hence, the Bitcoin ETF has not experienced any rebalancing-related inflows over the past couple of weeks.

Data from Glassnode indicates an 8% decline in the number of Bitcoins held on exchanges since May 2023, totaling 2.32 million BTC. This reduction represents a supply shortage, with the share of BTC on exchanges dropping to approximately 12% of the total BTC in circulation, the lowest level in five years. Typically, a decrease in BTC on exchanges is considered a positive sign, reflecting a preference for holding rather than selling assets.

*Note: The information provided is not intended as financial advice.