Bitcoin SUPPLY SHOCK, Timeline For Potential Crisis Revealed

April 17, 2024 7:39 pm Comments

Sources are sounding the alarm on a potential Bitcoin supply crisis set to rock the crypto markets over the next several months.

ByBit and several notable analysts claim that Bitcoin will experience a severe supply shock 9 months from now when all the Bitcoin trading on exchanges is projected to run out. Such a shock would catapult the price of Bitcoin to unseen highs.

This places the supply shock date sometime in January 2025; however, there is dissent within the crypto community as to how this upcoming cycle will play out.

Increased inflows from hedge funds looking to procure Bitcoin for their ETFs are driving the purported supply crisis.

Many influencers and analysts are imploring investors and speculators to accumulate more Bitcoin during this time, with a few saying that this time the halving may be different.

At the center of the potential irregularities are the very inflows currently driving the market. Some experts believe that Bitcoin has already formed a new high due to the activities of hedge fund giants like BlackRock and that the BTC price has exhausted itself. Here’s what everyone is saying:

Coin Telegraph shared the recent findings of the ByBit report:

“Bitcoin reserves in all centralized exchanges have been depleting faster. With only 2 million Bitcoins left, if we assume a daily inflow of $500 million to Bitcoin Spot ETFs, the equivalent of around 7,142 bitcoins will leave exchange reserves daily, suggesting that it will only take nine months to consume all of the remaining reserves.”

Trader Phoenix Desmond provided his price analysis for Bitcoin over the coming months:

“Let me ask you: Do you think max pain is Bitcoin to $80k post-halving, or $48k? Many will ignore this post, and crypto OGs here will tell you it is impossible, supply shock and ETF global takeover yada yada.

But the technicals are hinting at something else. Figure 1 is showing a weekly range with the lows at the 2017 High, and the High in April of ’21. Looks like a deviation.

Now, maxis will tell you this range consolidation at the highs is bullish. This is the 1st time in BTC’s history that we’ve seen it hover for so long at the highs. Usually, it tests once, then breaks straight through.

Instead, we had 16/30 daily closes above ’21 highs, and no follow through. Figure 2 is showing PA on the lower timeframes. Choppy as ever, but that ascending triangle clearly broke to the downside. It also failed to reclaim on a retest.

Figure 3 is showing what could come next, below $58k is a bear market. I say we need to throw bull and bear out the window and recognize that we are in uncharted waters.

Logically it makes sense that unstable times will lead to more extreme volatility. Where do we actually see any hint of normal cyclic activity in the world right now? Food for thought. Willing to be wrong.”

CoinDesk seemed to paint a different picture:

“This is the first time in which bitcoin broke its all-time highs before the halving, so there is a little bit of a concern that the ETFs have pulled demand forward and that maybe we’re going to linger where we are for a little bit,” said David Lawant, Head of Research at FalconX.

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