Part 8/11:
One of the most compelling themes is Bitcoin’s liquid supply—the amount of Bitcoin available for trading. As the halving approaches, several models predict a 6% reduction in supply over the next four years. This is extraordinary given historic cycles, where supply has remained relatively stable.
Unprecedented Scarcity…
The current environment exhibits the most illiquid supply ever, due primarily to massive institutional buying, ETF inflows, and the drain on liquid Bitcoin from miners, which are primarily holding onto their assets.
Key points:
- An estimated 657,000 Bitcoin will be mined over the next four years—yet, only a fraction will be available for sale.