Cryptocurrency exchange and trading platform, Bybit has released a new report highlighting the impacts of upcoming bitcoin halving event on bitcoin supply dynamics within exchanges in the crypto space. The crypto company has provided valuable information on how the halving event would improve scarcity and considerably influence the price of btc.
Exchanges to face bitcoin supply crisis
On Tuesday, April 16, Bybit published a new bitcoin-halving-blt99892c700a443e9a” rel=”nofollow”>report, which provides a detailed analysis of the bitcoin halving event taking place this month. The crypto company revealed that bitcoin reserves within the world's crypto exchanges have been depleting at a rapid rateleaving only nine months of btc supply on exchanges.
For a clearer perspective, Bybit explains that with only two million bitcoin remaining in its total supply, a daily influx of $500 million into bitcoin-etf-stagnates-4-straight-weeks/” rel=”nofollow”>bitcoin Spot ETF would result in approximately 7,142 btc leaving exchanges daily. This suggests that it would take only nine months to completely consume all the rest. bitcoin-exchange-inflows-short-holders-glassnode/” rel=”nofollow”>btc reserves on exchanges.
Bybit has stated that a major contributor to this bitcoin-exchange-supply-now-lowest-since-dec-2017/” rel=”nofollow”>supply squeeze would be the next bitcoin halving event, which would reduce the total supply of the cryptocurrency by 50% by cutting bitcoin-halving-period/” rel=”nofollow”>bitcoin miners Half rewards.
The crypto exchange has also revealed that after the halving event, sell-side btc supply is flowing towards Centralized Exchanges (CEX) will be greatly reduced. Furthermore, the “bitcoin supply constraint will apparently be worse.”
btc will become “twice as rare as gold”
In its report, Bybit compared bitcoin-supply-shock-crypto-guru/” rel=”nofollow”>The bitcoin offer after the halving event with the gold one. The crypto exchange revealed that bitcoin was steadily growing to become one of the safest investment options, even for the most experienced and sophisticated investors within the crypto space.
According to the exchange, the bitcoin Halving Event would significantly impact cryptocurrency scarcity factormaking it an even scarcer asset than gold.
Basing 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 event this Aprilbitcoin's S2F ratio is expected to rise to 112.
“Each bitcoin halving sharpens the narrative of bitcoin not just as a currency, but as a scarce digital asset, similar to digital gold. This upcoming halving in 2024 will push btc into an era of unprecedented scarcity, making it twice as rare as gold,” said Bybit co-founder and CEO Ben Zhou.
While highlighting the importance of The rarity of bitcoin after the halving event, bitcoin-s-pre–and-post-halving-bltd6cfc1fe77b54f58/” rel=”nofollow”>another report He also revealed that bitcoin price would experience significant upward pressure after the halving. This suggests that the reduction in btc supply could push its price to new highs during this period.
Furthermore, the report revealed that several crypto analysts predict that the post-halving surge in bitcoin price It would be less notable than the initial pre-halving surge that made the price of bitcoin reaching new all-time highs of more than $73,000.
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btc price drops below $63,000 | Source: BTCUSD on Tradingview.com
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