Crypto Exchanges Bitcoin Supply Can Only Last For 9 Months, ByBit Report
Cryptocurrency exchange and trading platform, Bybit has released a new report highlighting the impacts of the upcoming Bitcoin halving event on the supply dynamics of Bitcoin within exchanges in the crypto space. The crypto firm has provided valuable insights on how the halving event would enhance scarcity and considerably influence the price of BTC.
Exchanges Set To Face Bitcoin Supply Crunch
On Tuesday, April 16, Bybit published a new report, providing a detailed analysis of the Bitcoin halving event set to take place this month. The crypto firm disclosed that the Bitcoin reserves within the worlds crypto exchanges have been depleting at a rapid pace, leaving only nine months of BTC supply left on exchanges.
For a clearer perspective, Bybit explains that with just two million Bitcoin left in its total supply, a daily influx of $500 million into Spot Bitcoin ETFs would result in approximately 7,142 BTC leaving exchanges daily. This suggests that it would take only nine months to completely consume all of the remaining BTC reserves on exchanges.
Bybit has stated that a major contributor to this supply squeeze would be the upcoming Bitcoin halving event, which would reduce the cryptocurrencys total supply by 50% by cutting Bitcoin miners rewards in half.
The crypto exchange has also disclosed that after the halving event, the sell-side supply of BTC flowing into Centralized Exchanges (CEXs) will become grossly reduced. Additionally, Bitcoins supply squeeze will ostensibly be worse.
BTC To Become Twice As Rare As Gold
In its report, Bybit compared Bitcoins supply after the halving event with that of gold. The crypto exchange revealed that Bitcoin was steadily growing to become one of the safest investment choices, even for the most seasoned and sophisticated investors within the crypto space.
According to the exchange, the Bitcoin halving event would significantly impact the cryptocurrencys scarcity factor, making it an even rarer asset than gold.
Basing this analysis on the Stock-to-Flow (S2F) ratio, Bybit disclosed that Bitcoins S2F ratio is around 56 currently, while golds ratio is 60. After the halving event this April, Bitcoins S2F ratio is projected to increase to 112.
Each Bitcoin halving sharpens the narrative of Bitcoin as not just a currency, but a scarce digital asset, akin to digital gold. This upcoming halving in 2024 will thrust BTC into an era of unprecedented scarcity, making it twice as rare as gold, the Co-founder and CEO of Bybit, Ben Zhou stated.
While highlighting the significance of Bitcoins rarity following the halving event, another report also disclosed that the price of Bitcoin would experience significant upward pressure post-halving. This suggests that BTCS supply squeeze could potentially propel its price to new heights during this period.
Furthermore, the report revealed that several crypto analysts predict that the post-halving increase in Bitcoins price would be less remarkable than the early pre-halving surge which saw the price of Bitcoin hitting new all-time highs of more than $73,000.
Read more: https://www.newsbtc.com/news/bitcoin/crypto-exchanges-bitcoin-supply/
Text source: NewsBTC
