According to a recent report from Bybit, one of the top three cryptocurrency exchanges in the world based on volume, there are just nine months of Bitcoin supply remaining on exchanges. This is because there will soon be a 50% reduction in Bitcoin supply, due to the impending halving. Moreover, the shortage of Bitcoin is anticipated to worsen after the halving.
The report says:
“Bitcoin reserves in all centralized exchanges have been depleting faster. With only 2 million bitcoins left, if we assume a daily inflow of $500 million to Bitcoin Spot ETFs, the equivalent of around 7,142 bitcoins will leave exchange reserves daily, suggesting that it will only take nine months to consume all of the remaining reserves.”
In fact, the report claims that the halving will make Bitcoin twice as scarce as gold.
The report mentioned:
“The Stock-to-Flow (S2F) ratio is calculated by dividing the circulating supply of a commodity by its annual production, yielding a gauge of scarcity. Bitcoin’s S2F ratio is around 56 before the upcoming halving, while gold is 60. After the halving in April 2024, Bitcoin’s S2F ratio is projected to double to 112.”
Considering this, institutional investors—especially since the U.S. approved Bitcoin Spot ETFs—have been ahead of the game and prepared for this occurrence in preparation.
The report further added:
“Bitcoin is becoming the safest investment choice even for the most sophisticated investors in the crypto field. The price correlation between Bitcoin and the rest of cryptocurrency has been consistently high, and investment in Bitcoin has also been regarded as the cryptocurrency with the lowest beta.”
Ben Joe, Co-Founder and CEO of Bybit stated:
“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 Bitcoin into an era of unprecedented scarcity, making it twice as rare as gold.”
