The highly anticipated Bitcoin halving, set to occur in April 2024, is poised to usher in a new era of scarcity for the world’s largest cryptocurrency.
As the block reward is reduced from 6.25 to 3.125 BTC, the supply dynamics of Bitcoin are expected to undergo a significant shift, with far-reaching implications for investors, miners, and the broader crypto ecosystem.
TLDR
- The Bitcoin halving in April 2024 will reduce the block reward to 3.125 BTC, making Bitcoin twice as scarce as gold based on the Stock-to-Flow (S2F) ratio.
- Bitcoin reserves on centralized exchanges are depleting rapidly, with only 9 months of supply left at current inflow rates to Bitcoin Spot ETFs.
- Investors, especially institutions, have been positioning for the halving in advance, allocating more to Bitcoin since September 2023.
- Post-halving, the supply squeeze is expected to intensify as mining rewards are cut in half and unprofitable miners…
