Bybit, a well-known cryptocurrency exchange and trading platform, has recently published a report focusing on the anticipated effects of the upcoming Bitcoin halving on the Bitcoin supply within the crypto market. The report sheds light on how this event will increase scarcity and significantly impact Bitcoin’s price.
Exchanges Set To Face Bitcoin Supply Crunch
On Tuesday, April 16, Bybit shared a comprehensive report about the upcoming Bitcoin halving event in this month. The exchange revealed that the Bitcoins stored in global crypto exchanges have been decreasing significantly, with just under a year’s worth of BTC remaining.
To provide a better understanding, Bybit shares that when roughly 2 million Bitcoins are left in existence, about $500 million flowing into Spot Bitcoin ETFs daily will cause around 7,142 Bitcoins to be taken out of exchanges each day. This means that all the remaining Bitcoons on exchanges could be depleted within approximately nine months.
According to Bybit’s announcement, the upcoming Bitcoin halving is expected to significantly decrease the supply of Bitcoin. This is because the reward given to miners for each block they mine will be reduced by half during this event.
After the bitcoin halving, the amount of Bitcoin being sold on crypto exchanges from miners is expected to significantly decrease. In other words, there will be less Bitcoin available for sale on centralized exchanges following the event. Furthermore, the reduction in Bitcoin supply could make the scarcity even more pronounced.
BTC To Become “Twice As Rare As Gold”
According to Bybit’s recent report, Bitcoin’s supply post-halving was analyzed in comparison to gold. This discovery underscores Bitcoin’s increasing appeal as a secure investment option, even for the most experienced and knowledgeable crypto investors.
Based on the information provided, the Bitcoin halving is expected to decrease the production of new Bitcoins, resulting in a lower supply and potentially increasing its value and scarcity, making it comparable to or even more scarce than gold.
Based on the Stock-to-Flow (S2F) analysis, Bybit revealed that the current S2F ratio for Bitcoin is approximately 56, while it’s 60 for gold. After the recent halving event in April, Bitcoin’s S2F ratio is predicted to reach 112.
Ben Zhou, the Co-founder and CEO of Bybit, explained that each Bitcoin halving strengthens the story of Bitcoin being more than just a digital currency, but also a limited digital asset, similar to gold. The next halving scheduled for 2024 will bring an era of exceptional scarcity for BTC, making it even rarer than gold.
After the Bitcoin halving, a report pointed out the importance of Bitcoin’s scarcity. At the same time, this report predicted that Bitcoin’s price would likely increase due to this event. In other words, Bitcoin becoming harder to mine could significantly boost its value during this time.
In addition, the analysis in the report indicated that some cryptocurrency experts believe that the price rise of Bitcoin following the halving event may not be as significant as the notable increase prior to the halving, which led to Bitcoin’s price reaching new peaks above $73,000.
Read More
Sorry. No data so far.
2024-04-17 20:10