DUBAI, UAE, April 17,
2024 /CNW/ -- Bybit, one of the world's top three
crypto exchanges by volume, has released a new
report showing that the current supply dynamics of
Bitcoin leave only nine months of supply left on
exchanges. This is due to the upcoming Bitcoin
halving, which reduces supply by 50%.
Post-halving, the Bitcoin supply squeeze is
expected to intensify. "Bitcoin reserves in all
centralized exchanges have been depleting faster," the report says.
"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."
Indeed, the halving will make Bitcoin twice as rare
as gold, according to the report. "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," the report says.
"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."
Given this institutional investors have been ahead of the curve
and positioned for this event in advance, especially since the U.S.
approval of Bitcoin Spot ETFs. "Bitcoin
is becoming the safest investment choice even for the most
sophisticated investors in the crypto field," the
report says. "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."
"Each Bitcoin halving sharpens the narrative of
Bitcoin as not just a currency, but a scarce digital
asset, akin to digital gold," stated Ben
Joe, Co-Founder and CEO of Bybit. "This upcoming halving in
2024 will thrust Bitcoin into an era of unprecedented
scarcity, making it twice as rare as gold."
Read the report here
#Bybit / #TheCryptoArk
About Bybit
Bybit is one of the world's top three crypto
exchanges by trading volume with 25 million users. Established in
2018, it offers a professional platform where crypto
investors and traders can find an ultra-fast matching engine, 24/7
customer service, and multilingual community support. Bybit is a
proud partner of Formula One's reigning Constructors' and Drivers'
champions: the Oracle Red Bull Racing team.
For more details about Bybit, please visit Bybit Press.
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SOURCE Bybit