In the realm of digital finance, the progressive cryptocurrency exchange, Bybit, has unveiled a report focusing on the anticipated repercussions of the impending Bitcoin halving event. This event, a landmark moment in the crypto sphere, will fundamentally transform Bitcoin’s exchange-based supply dynamics, enhancing its scarcity and significantly impacting its price index.
The report, published on Tuesday, April 16, offers a comprehensive exploration of the Bitcoin halving event on the horizon. Bybit has unearthed that the crypto world has been witnessing a blistering depletion of Bitcoin reserves across global exchanges, exposing a mere nine-month reserve of Bitcoin supply on these platforms.
To offer a more vivid illustration, Bybit suggests considering a scenario wherein just two million Bitcoin remain in its overall supply. If the daily inflow into Spot Bitcoin ETFs equals up to $500 million, roughly 7,142 BTC would exit exchanges each day. This effectively indicates an impending extinction of the remaining Bitcoin reserves on exchanges within a short span of a mere nine months.
The major culprit of such a supply squeeze, according to Bybit, is the imminent Bitcoin halving event. The event, pivotal in the crypto calendar, would whittle the complete supply of the cryptocurrency down by halving Bitcoin miners’ rewards, subsequently reducing the total supply rate by a staggering 50%.
Post-halving, Bybit predicts a dramatic decrease in the sell-side supply of Bitcoin making its way into Centralized Exchanges (CEXs). Furthermore, the squeeze on Bitcoin’s supply would be even more severe after this restructuring event.
The report elucidates how the Bitcoin supply, post-halving, poses a powerful comparison with that of gold. Establishing Bitcoin as a steadily burgeoning safe investment bet, Bybit’s findings advocate that even well-seasoned and knowledgeable investors within the crypto realm are warming up to Bitcoin.
The exchange company explains that the Bitcoin halving event would significantly intensify the cryptocurrency’s scarcity factor, effectively transforming it into an asset more exceptional than gold itself. By using the stock-to-flow (S2F) ratio as its analytical instrument, Bybit reveals that Bitcoin’s current S2F ratio stands around 56, as compared to gold’s ratio of 60. Post-April halving, Bitcoin’s S2F ratio is estimated to leap to 112.
Bybit’s Co-founder and CEO, Ben Zhou, underscores how Bitcoin halving events amplify the narrative of Bitcoin as a scarce digital commodity, comparable to digital gold. The forthcoming 2024 halving would catapult Bitcoin into an epoch of unparalleled scarcity, making it twice as rare as gold.
As Bitcoin descends into rarity post-halving, another report intimates at a significant upward thrust on Bitcoin’s price. The findings further suggest that the supply squeeze of BTC could potentially catapult its price to unprecedented stratospheric levels.
These findings indicate Bitcoin’s price trajectory would experience much more pronounced growth in the aftermath of the halving than during the initial pre-halving surge, during which Bitcoin prices breached previous ceilings, hitting a history-making high of over $73,000.
At present, however, Bitcoin’s price has seen a decrease, falling below $63,000. However, notwithstanding these recent ebbs and flows, the digital asset’s potential remains resolute as crypto enthusiasts eagerly anticipate the halving event’s transformative repercussions.
