Cryptocurrency exchange and trading platform, Bite has released a new report highlighting the impact of the crisis upcoming Bitcoin halving event on Bitcoin supply dynamics within exchanges in the crypto space. The crypto company provided valuable insights into how the halving would significantly increase scarcity affect the price of BTC.
Exchanges Ready to Face the Bitcoin Supply Crunch
On Tuesday, April 16, Bybit published a new one report, with a detailed analysis of the Bitcoin halving that will take place this month. The crypto company announced that Bitcoin reserves have been within the world’s crypto exchanges exhausting quicklyleaving only nine months of BTC supply on the exchanges.
For a clearer perspective, Bybit explains that with only two million Bitcoin left in its total supply, a daily inflow of $500 million in Discover Bitcoin ETFs would result in approximately 7,142 BTC leaving the exchanges daily. This suggests that it would take only nine months to fully consume the remaining amounts BTC reserves on exchanges.
Bybit has stated that it will make a major contribution to this supply contraction would be the upcoming Bitcoin halving event, which would reduce the total supply of the cryptocurrency by 50% by cutting Bitcoin miners reward halved.
The crypto exchange also revealed that BTC supply will be pouring in on the sell side after the halving Centralized Exchanges (CEXs) will be greatly reduced. Moreover, Bitcoin’s supply squeeze will ostensibly be worse.
BTC will become ‘twice as rare as gold’
In its report, Bybit compared The Bitcoin offering after the halving with that of gold. The crypto exchange found that Bitcoin was steadily growing into one of the safest investment choices, even for the most seasoned investors sophisticated investors within the crypto space.
According to the exchange, the Bitcoin halving event would have a significant impact on the cryptocurrency scarcity factormaking it an even rarer asset than gold.
Based on this analysis on the Stock-to-Flow (S2F) ratio, Bybit revealed that Bitcoin’s S2F ratio is currently around 56, while gold’s ratio is 60. After the halving in AprilBitcoin’s S2F ratio is expected to rise to 112.
“Each Bitcoin halving reinforces the narrative that Bitcoin is not just a currency, but a scarce digital asset, similar to digital gold. This upcoming halving in 2024 will bring BTC into an era of unprecedented scarcity, making it twice as rare as gold,” said Bybit co-founder and CEO Ben Zhou.
While we emphasize the meaning of The rarity of Bitcoin after the halving event, another report also announced that Bitcoin’s price would experience significant upward pressure after the halving. This suggests that the tight supply of BTC could potentially push the price to new highs during this period.
Furthermore, the report revealed that several crypto analysts predict that the rise in the price of Bitcoin after the halving would be less notable than the early pre-halving surge that saw Bitcoin’s price rise reaching new all-time highs of more than $73,000.
BTC price drops below $63,000 | Source: BTCUSD on Tradingview.com
Featured image from Analytics Vidhya, chart from Tradingview.com
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