Bybit report: After Bitcoin halving, exchange BTC reserves are expected to be exhausted within 9 months

A recent analysis by cryptocurrency exchange Bybit suggests that if demand for BTC remains at current levels, exchanges could face a shortage of BTC by the end of 2024. The report predicts that if the current withdrawal rate continues (currently around 7,000 BTC per day), exchanges’ BTC reserves could be completely depleted within the next nine months. The shortage prediction is closely tied to the expected halving event in 2024. Alex Greene, senior analyst at Blockchain Insights, said: “The rapid depletion of Bitcoin reserves is preparing the market for a possible liquidity crisis. As reserves decrease, the market’s ability to absorb large sell orders without affecting prices is weakened.” According to the Bybit report, institutional investors have significantly increased BTC investments following the recent approval of spot Bitcoin ETFs by U.S. regulators, driving up demand against the backdrop of shrinking supply. (CryptoSlate)