Bybit, one of the top cryptocurrency exchanges globally, has released a report revealing that Bitcoin’s supply on exchanges will be extremely limited in the next nine months due to the upcoming halving event, which will cut Bitcoin’s supply by half, making it scarcer than ever.
After the halving, the supply of Bitcoin is expected to decrease even more rapidly. The report indicates that if $500 million is invested in Bitcoin spot ETFs every day, it would only take nine months to use up the remaining 2 million Bitcoins available on exchanges.
This scarcity will make Bitcoin even rarer than gold, with its Stock-to-Flow ratio doubling after the halving. “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.”
Institutional investors are already preparing for this event, especially since the approval of Bitcoin Spot ETFs in the U.S. They see Bitcoin not just as a currency but as a highly valuable digital asset, with its price being closely tied to the overall cryptocurrency market and exhibiting low risk compared to other cryptocurrencies.
Ben Zhou, Co-Founder and CEO of Bybit, said, “This upcoming halving in 2024 will thrust Bitcoin into an era of unprecedented scarcity, making it twice as rare as gold.”
Ben emphasized that each Bitcoin halving reinforces the idea of Bitcoin being a scarce digital asset, similar to digital gold.
Also Read: What’s Expert Views on the Bitcoin Halving Impact
