Scarcity! Bitcoin Supply Hits 2015 Lows Amidst Growing Demand

On-chain data suggests an impending supply shock is coming as Bitcoin’s supply has reached its lowest since 2015. The amount of Bitcoin in exchanges has dropped to 1.84 million BTCs, even as demand for the asset has kept increasing.

Interestingly, demand for Bitcoin has grown astronomically following the institutional invasion of the sector. Exchange-traded products have also formed a significant part of the inflow into Bitcoin, as it demands at least ten times what miners mine daily.

Finite Meets Scarcity

In a tweet late Monday, Bitcoin educator Oliver L. Velez described the latest scarcity as alarming. According to him, “the number of those who will never allow their $btc to ever return to a centralized exchange is also increasing at an alarming rate.”

Velez alleged that Bitcoin would become “the scarcest asset on Earth” by April. The pro-trader stated that demand for Bitcoin would make the world realize how underestimated the finite nature of Bitcoin is.

Velez’s assumptions correlate with those of other analysts who have predicted that the April halving, coupled with the incessant demand for Bitcoin by ETF products and whales, would drive the Bitcoin price to new heights. Bitcoin is currently trading above $52,000 and is just $17,000 away from its all-time high.

Inflow Heightens

After the daily trading sections on Tuesday, ETF products recorded their biggest single-day inflow since launch. According to a report, about $2 billion flowed into Bitcoin, with major contributions from VanEck’s HODL and BitWise’s BTCW.

Analyst Eric Balchunas noted that the number of trades increased massively from 500 to 50,000 and stated it felt “retail army-ish.” It is unclear if retailers would enter the bull run by actually buying Bitcoin or through ETFs, but their presence plays a crucial role in bull runs.