Crypto exchange Bybit has released a report that sounds the alarm on Bitcoin’s dwindling supply on exchanges.
Bitcoin Supply Crunch
Bybit’s report reveals that Bitcoin reserves on exchanges have been rapidly declining, with only enough left to last for about nine months. This is due to a daily influx of $500 million into Bitcoin ETFs, which is depleting exchange reserves by around 7,142 BTC per day.
Halving Event to Exacerbate Supply Squeeze
The upcoming Bitcoin halving event, scheduled for this month, will worsen the supply squeeze. The halving will reduce the rewards for Bitcoin miners by half, further limiting the supply of new BTC.
Bitcoin Becoming “Twice As Rare As Gold”
Bybit compares Bitcoin’s post-halving supply to that of gold, noting that Bitcoin’s scarcity factor will increase significantly. After the halving, Bitcoin’s Stock-to-Flow (S2F) ratio is projected to rise to 112, while gold’s is only 60.
Price Implications
Analysts predict that the supply squeeze could drive Bitcoin’s price higher post-halving. However, it’s unlikely to be as dramatic as the pre-halving surge that saw Bitcoin reach record highs of over $73,000.
