Analysis: Bitcoin Exchange Supply Rapidly Diminishing, Halving Approaching
The available supply of Bitcoin on exchanges is rapidly dwindling, with only 2 million BTC left on centralized trading platforms, according to a recent analysis by Bybit. This represents less than 10% of the total network’s supply and could potentially be depleted within the next nine months.
The analysis, based on data from CryptoQuant, suggests that with a daily inflow of $500 million to Bitcoin Spot ETFs, approximately 7,142 bitcoins will leave exchange reserves each day. This trend could lead to the complete exhaustion of remaining reserves in just nine months.
The upcoming Bitcoin halving, scheduled for later this week, will further reduce the asset’s daily supply issuance from 900 BTC to 450 BTC. This, combined with the significant outflows from ETFs and potential selloffs by miners, could create a supply squeeze in the market.
While some attribute the recent decline in Bitcoin’s price to geopolitical tensions or tax season selling, Bybit remains optimistic about the long-term prospects of the cryptocurrency. The report suggests that Bitcoin tends to rally twelve months after each halving, with a high probability of reaching a new all-time high this time.
Overall, the diminishing supply of Bitcoin on exchanges and the upcoming halving event are creating a sense of urgency among investors and miners alike. The market dynamics are shifting, and the future of Bitcoin remains uncertain yet promising.
