Subnostr

From InvestAnswers on Twitter:

“#Blackrock took 11,500 $BTC from Supply in 2 days

900 Bitcoin are issued daily, and you can see Blackrock's move into their cash supply from last night into Bitcoin, buying the dip. Now, they mostly hold Bitcoin.

The key point is 11,500 BTC were sucked from the system in 2 days by 1 player.

That alone is approximately 13 days of supply.

In addition, IBIT Spot ETF only managed an average of 25% of the volume over two days - so we can assume 46K in 2 days was sucked out (yeah, I know $GBTC impacted this). Net net, if this pace continues, we're facing a severe supply crunch.

Assuming 11,500 x 4 = 46,000 or 23,000 per day, that's 25.56 times the daily production consumed by US ETFs per day alone... forget about retail investors, other global ETFs etc.

Ignore the price fluctuations; this asset is incredibly hard, and if this continues, we will face an extreme supply crunch. #Bitcoin ETF launch was a huge success (despite egregious GBTC fees)”

What he doesn’t include in these calculations is that there is a halving in ~85 days, cutting the number to ~450 bitcoin per day.

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Discussion

Trevor Bello 2y ago

Shit is going to get real and quickly. It's unfortunate really because alot of plebs will be unable to stack at the current rate and some will be priced out all together. 😕 I hate to see it I really do. Heading into the future we need to stay Solvent and continue dca'ing as much as possible. As supply shrinks demand will increase making it all the more difficult to turn fiat into bitcoin.

Because of this plebs will have to find ways to provide value to the world via their own POW and trade that value for bitcoin. In the end that's what Satoshi envisioned right?

Peers transacting amongst each other across the globe without any central planners or printers controlling the supply.

It will be a rough transition but we will survive and bit oin will thrive..