Cryptocurrency exchanges currently hold only nine months' worth of Bitcoin supply at the current price, with the Bitcoin halving just three days away. According to the latest analysis by Bybit, there are only 2 million bitcoins left, and there is a daily influx of $500 million into the spot Bitcoin ETF, with approximately 7,142 bitcoins expected to leave exchange reserves daily.

Unprecedented Bitcoin Supply Scarcity

The much-awaited halving event is expected to reduce Bitcoin's supply by 50%, making this digital asset even scarcer. Bybit emphasizes the rapid depletion of Bitcoin reserves on centralized exchanges post-halving. This trend suggests that it will take approximately nine months to deplete all remaining reserves.

Ben Joe, co-founder and CEO of Bybit, stated, "Each Bitcoin halving strengthens the narrative that Bitcoin is not just a currency but a scarce digital asset, akin to digital gold. The upcoming halving in 2024 will propel Bitcoin into an unprecedented era of scarcity, doubling its scarcity compared to gold."

The report distinguishes Bitcoin from gold and emphasizes the increased scarcity of Bitcoin post-halving. The Stock-to-Flow ratio (S2F), a measure of scarcity, is expected to increase from 56 to 112 post-halving, surpassing gold's S2F ratio of 60.

Institutional Adoption of Bitcoin

This comparison solidifies Bitcoin's status as a scarce digital asset, making it a viable alternative to traditional safe-haven assets like gold. Additionally, Bybit highlights institutional investors' adoption of Bitcoin following the recent approval of spot Bitcoin ETFs in the United States.

This trend indicates that institutions recognize the importance of this digital asset as a safe investment choice, leading to increased investment activity pre-halving. The correlation between Bitcoin and other cryptocurrencies remains strong, further enhancing Bitcoin's reputation.

The report notes that Bitcoin's deflationary model is based on halving events, which occur roughly every four years. This mechanism halves block rewards, thereby limiting the supply of this leading digital asset. With the upcoming halving, block rewards will decrease from 6.25 bitcoins to 3.125 bitcoins, and historical trends suggest a potential price surge in Bitcoin.

Furthermore, analysts expect a moderate decrease in Bitcoin mining hash rate post-halving due to the adoption of current highly profitable and efficient mining equipment. Despite short-term declines, the mining industry's resilience is expected to result in a rapid rebound.