In a recent report, the top cryptocurrency exchange Bybit talked about how the stock of Bitcoin (BTC) in exchanges is decreasing and said that it might only last for nine months. The study goes into detail about the upcoming Bitcoin halving event and how it will likely change the supply dynamics of the most famous cryptocurrency in the world.
Bybit’s in-depth study, which came out on April 16, focuses on the effects of the Bitcoin halving event that is happening this month. According to Bybit, the amount of Bitcoin stored on global cryptocurrency markets has been dropping quickly, leaving only nine months’ worth of BTC on these sites.
Bitcoin’s Supply Depletion Warning
To show how bad things are, Bybit says that since there are only two million Bitcoins left in circulation, a daily inflow of $500 million into Spot Bitcoin ETFs would cause about 7,142 BTC to leave markets every day. The scary rate at which the reserves are being used up means that the last bit of Bitcoin could be gone in nine months.
Bybit says that this coming supply squeeze is mostly due to the upcoming Bitcoin halving event, which will cut the benefits for Bitcoin miners in half, thereby lowering the total supply of the cryptocurrency. The exchange also thinks that there will be a big drop in the amount of BTC coming into Centralized Exchanges (CEXs) from the sell side after the halving event, which will make the supply shortage even worse.
Bybit shows how BTC supply has changed since the halving and compares it to gold. This supports BTC growing image as a safe investment, especially among crypto investors with a lot of experience. The story says that BTC will become even more scarce after the halving, making it an even more valuable asset than gold.
The Stock-to-Flow (S2F) ratio is used by Bybit to predict that BTC S2F ratio, which is 56 right now, will double to 112 after the April event. Ben Zhou, co-founder and CEO of Bybit, says that each BTC halving adds to the story that BTC is a scarce digital currency, like digital gold. He thinks that the next halving in 2024 will make BTC twice as scarce as gold, which will be an all-time high.
In addition to pointing out how rare Bitcoin will be after the split, the report says that the price of the cryptocurrency will go up a lot after the event. Some experts are warning, though, that the price rise after the halving may be significant, but it might not be as significant as the amazing rise before the halving, which sent BTC to new all-time highs above $73,000.
