Exchanges could run out of Bitcoin within 9 months.

Bitcoin Supply Squeeze on Exchanges Predicted by Bybit

A recent report by Bybit, a major cryptocurrency exchange, suggests a potential Bitcoin (BTC) shortage on exchanges within the next nine months. This prediction hinges on the upcoming Bitcoin halving event, which will significantly reduce the number of new Bitcoins generated with each block mined.

According to Bybit's analysis, only 2 million Bitcoins remain available on centralized exchanges. With a daily inflow of $500 million into spot Bitcoin ETFs (funds that track the price of Bitcoin), Bybit estimates a daily withdrawal of approximately 7,142 BTC from exchange reserves. This continual drain, coupled with the supply reduction from the halving, could deplete exchange reserves within nine months.

The Bybit report highlights the potential impact of the halving on Bitcoin's price. Historically, halving events have been followed by price increases due to a decrease in supply. With fewer Bitcoins readily available on exchanges, Bybit suggests this trend might repeat.

Bitcoin Eyes Rebound as Geopolitical Tensions Rise

Despite a recent 10% weekly drop that rattled investor confidence, some traders see potential for a Bitcoin (BTC) surge in the coming months. This optimism is fueled by two key factors: international politics and the ongoing search for a reliable investment hedge.

Bitcoin has a history of being viewed as a potential hedge against geopolitical instability. Its creation in the aftermath of the 2008 financial crisis highlights this initial intent. While Bitcoin's correlation to traditional markets has increased in recent years, some traders believe the "hedging narrative" remains relevant.

Edouard Hindi, Chief Investment Officer at Tyr Capital, expressed this sentiment in a recent email: "Bitcoin remains a viable doomsday asset in 2024. We've seen an increase in its correlation with gold, and investors continue to diversify away from traditional financial instruments."

The current geopolitical climate, with its potential for increased volatility, could be a catalyst for Bitcoin's price recovery. As investors seek safe havens for their assets, Bitcoin may once again find itself in the spotlight. However, it's important to remember that the cryptocurrency market is still young and inherently volatile. While a surge is possible, it's not guaranteed.

U.S. Senator expresses CBDC concerns and supports Bitcoin.

At the Bitcoin Policy Summit, a Tennessee Republican voiced strong reservations about Central Bank Digital Currencies (CBDCs), branding them as potential surveillance tools for government oversight.

"Central Bank Digital Currencies are essentially a way for the government to have a peephole into everyone's personal finances," remarked Blackburn, expressing concerns over the extensive access to individual financial transactions that CBDCs could enable, potentially leading to increased governmental control over personal freedoms.

In contrast, Blackburn lauded cryptocurrencies like Bitcoin (BTC) for their decentralized nature and their role in fostering financial independence.

"We value the freedom and privacy aspects of Bitcoin," she emphasized, highlighting its positive impact in promoting financial autonomy.

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