Bitcoin Supply Crisis Warning

    what’s the one iron rule that causes prices to go up of course it’s the law of supply and demand it’s very very simple and it never really fails does it and Bitcoin right now is facing a supply demand crisis if a lot of people want to buy something AKA Bitcoin and there isn’t enough of that thing to go around AKA Bitcoin then you can be sure that the price will go in One Direction only that is up again for Bitcoin now where Bitcoin differs from say the US dollar of course and you need to understand this that there’s no limit whatsoever on how many dollars can be printed they just print it print print print print print and just make more money it’s ridiculous Bitcoin though absolutely hardc cap to 21 million coins in fact even gold isn’t as hard of an asset as BTC because no one can possibly put a hard cap on the gold Supply and let’s not even get into the subject of paper gold and the market manipulation the gold market it’s a mess guys come on it’s ridiculous Okay so know that BTC is a hard-coded limit on Supply but this year the idea that a genuine BTC supply side crisis is headed our way and that it’s coming sooner than later has gained a lot more traction than ever before I know we’ve been talking about Bitcoin supply crisises for years and there kind of has been for a while but it just keeps getting worse so let’s look at why a Bitcoin Supply crisis is becoming an Ever growing real possibility so let’s rewind back to March there were a slew of Articles picking up on the idea of an impending bit Bitcoin Supply crisis these reports of course centered around the analysis of the spot Bitcoin ETFs which launched obviously in January and by March had taken in an astonishing eye-watering billion dollar of net inflows at the same time it was reported that around three million BTC of course was held by big entities such as exchanges miners Etc and don’t forget obviously that there are estimates that anywhere from 10 to 30% of the total existing supply of Bitcoin has been lost forever in boating accidents below the waves of time well around a million Bitcoins locked up in addresses belonging to Satoshi Nakamoto who may or may not be dead maybe just laying on the beach in the C Island shows up one day and brings the Bitcoin with them we’ll see adding fuel to the fire of course Bitcoin mining firm Hut 8 reported being contacted by Major Banks wanting to directly purchase BTC citing supply shortages on changes in OTC desks soon after BTC price had pushed up to new highs and let’s not forget this was with the having at that time still to come the having then of course went exactly as predicted as it always will click having happens block reward cut in half meaning that mid April onwards new coin issuance was cut in half from 900 a day down to now only around 450 BTC being mined into existence every every single day with the BTC price currently chopping chopping chopping chopping chop chop chop chopping around in the 60 K and the having behind us how are those Supply crisis predictions looking right now well a couple of months further down the line what’s going on so do crisis predictions still hold up firstly we can see that after maintaining an incredible pace through March from the second week of April through to the start of May that the ETS finally experienced some net outflows and the accumulation curve looks to have flattened off so as the ETFs were at the center of most of the recent Supply crisis predictions and conversation does this mean that the crisis has been averted or even that it was all just hot air the whole gosh darn time well not really let me explain there’s several reasons for this first of all about those gosh darn ETFs the cool down that we’ve seen recently is entirely natural and normal fine we had this big explosive move at the start astonishing move right we also saw gbtc grayscale Bitcoin selling pressure uh not only ease off considerably but amazingly for the first time recently since ETFs launched gbtc for some reason had a couple days of net in who the heck’s buying grayscale Bitcoins the worst ETF of the mall anyway otherwise there’s just been a big Cascade of offload from them anyway then there’s the likelihood of a second wave of ETF accumulation this of course is where we need to really focus our conversation because wave one was just wave one of the tsunami but before we discuss that a quick note that every week my team and I are publishing the absolute best damn newsletter in the entire cryptocurrency business it is called the wealth Mastery newsletter every issue is jam-packed full of alpha an opportunity for investors on altcoins Meme coins nfts defi charts and much much more you can join our 125,000 plus weekly readers for free using the link Down Below in the description check it out thank you very much now back to it so keep in mind that the ETFs have put in place a permanent new Bitcoin investment mechanism and up until now we’ve only seen the very first wave of the initial money tsunami in fact black Rock’s head of digital assets explained this month that he foresees big institutional players such as Sovereign wealth funds Pension funds and endowment funds all getting in we just had an announcement from suasana $420 billion asset under management firm that they put a billion dollars almost in a Bitcoin and in the months to come we’re going to see more organizations just like that getting in it’s not only black rock making these kinds of huge forecast wealth management firm barenstein which handles $725 billion dollar of assets has predicted that the ETFs will become much more closely integrated with the private bank platforms Wealth Advisors and brokerage platforms AKA everybody’s coming for the coins sounds pretty bullish right and that’s not all B institutions have been sending in their 13f filings to the SEC which of course they’re required to disclose their quarterly Holdings and these have revealed that there are some big firms that are indeed buying into the ETFs with early movers including BMB perrya BN melon as mentioned Susana International Group with their billion dollars of shares almost a billion dollars of shares acquired high tower Artemis Wealth Advisors and a lot of others lots of big names there then there’s the hard data about exchanges showing that the Bal this is crazy you got to listen to this this is nuts showing that the balance of Bitcoin held on cryptocurrency exchanges is now below 2 million a figure that has been nonstop falling since January 2020 while exchange inflows at the same time that that’s happening are at their lowest rates in like 10 years all of which feels in line with those earlier claims from the Hut 8 mining operator about being contacted directly by Banks who want to buy Bitcoin Straight From the Source because they’re having a hard time finding it elsewhere and we should also look at how much supply of course is being held by those long-term holders because this is a very important metric people who have exited Fiat this metric is still very close to all-time highs and that impacts supply and demand because long-term holders people like you and me Wales all these people by the nature of the category these people are holding on for higher prices before they consider selling or they’re not selling they’ve exited Fiat they’re Fanatics this is backed up by a metric called Bitcoin value days destroyed multiple which sounds a bit complicated but essentially it shows older coins entering into the market to be sold this tends to happen at bull market Peaks and right now it looks like it has been reset almost to Bare market levels which is crazy that suggests again longterm holders are not in the mood to be selling which means you guessed it reduced available supply for all these buyers who want to buy it that all said though there are indicators and op a suggesting the opposite that supply of course will always meet demand and it’ll be just fine so let’s take those in hand too we don’t want to just moonboy bull poost all the time we have to consider the other side of the coin the other side of the argument firstly while the total Bitcoin Supply is hardcoded and knowable there are no similar guarantees about the levels of demand for that you know traditional investors outside the crypto bubble how much Bitcoin do they really want it’s still a very novel digital asset and as mentioned ETF flows have for the moment at least calm down while we’re expecting continued waves of interest to come in what if they don’t also when whales wake up and previous dormant coins start to move as recently happened when a 2014 whale wallet shifted a th Bitcoin right we can see the potential for suddenly increased selling pressure there’s a lot of those whales out there whales have gargantuan amounts of Bitcoin now that may or may not be absorbed by ETFs the demand from that and what’s more there’s been an increase in the Bitcoin total OTC desk balance well it went down right but started moving up again uh the past few months the BTC price made new all-time highs meaning that there’s again an increase in Supply available on the market through this particular Avenue but but but would you bet against Bitcoin in a bull run ultimately as we said at the start this all comes down to supply and demand a supply crisis is 100% plausible and to an extent there’s always a bit of a supply crisis with Bitcoin just how serious of a supply crisis there’s a long list of factors suggesting it’s coming down the road in a very serious way and price will go up much much higher but only of course if bullish demand stays and is real maybe at this point we can look back at previous bull markets and guess what in 2013 and again in 2017 and then again in 2021 the fomo was insane and absolutely real demand went through the roof and while you could argue that well those were just different times back when Bitcoin market cap was so much smaller and we can’t really make that comparison anymore well those periods by the way all occurred without ETFs without trafi Boomer money having a way to just easily AP into Bitcoin we have now laid the rails for easier retail participation but also institutional fomo and participation something that’s never been really this present before also one other factor to consider is liquidity in the markets and that’s also pointing towards increased demand coming ahead we can see at the M2 money supply just flipped positive the global equid index appears to be rising in line with our cyclical trends that we can expect in the market which means of course more money in circulation more money in circulation searching for Bitcoin that equals more uh appetite for risk assets with more money is in the market a supply side crisis may not be you know nailed 100% certainly nothing in crypto ever is but the question is would you want to bet against the possibility of this Supply crisis which is already starting to happen in a Bitcoin bull run with global liquidity increasing I want to finish up I think about one last question that’s a little bit philosophical perhaps what’s the difference between currency and money and what does that have to do with Bitcoin well of course it’s all about currency versus money isn’t it is it better to own money than to own currency but what does that statement actually mean well one way to look at it is that money is the durable stable store value underlying a currency which is a convenient medium of exchange dollars for example they’re a currency right they’re easy to use paper fund tickets right historically they used to be backed by something like gold not anymore and of course it’s gold that was the real store of value but that’s no longer the case dollars are just backed by air so we have the Fun tickets but nothing really backing up our fund tickets so we have currency but not really money no store of value behind it yeah you can still buy gold right but this is where Bitcoin comes in because Bitcoin is a store of value a digital commodity a hard money in our broken Fiat system and yeah I know it’s volatile but a supply crisis will occur as people seek to change this junk for something better and there’s a lot of this junk with more of it being printed all the time and people are going to trade in for hard money of which there is very little Bitcoin that all said though maybe we shouldn’t even be calling this a crisis at all because it’s there by Design it’s how a store of value works and Bitcoin is a hard hard capped deliberately uh store value coin so if you’ve planned ahead and you’ve been stacking then a future Supply crisis is actually really good news thanks for watching

    Bitcoin Supply Crisis Warning
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    00:00 Intro
    01:17 Supply Crisis Reported in March
    03:17 Do Crisis Predictions Still Hold Up?
    05:11 The Alternative Case
    09:52 Would You Bet Against Bitcoin in a Bull Run?
    11:49 Currency vs Money

    #bitcoin #crypto #investing
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    Disclaimer
    Everything expressed here is my opinion and not official investment advice – please do your own research before risking your own money. Lark Davis (The Crypto Lark and affiliated brand Wealth Mastery) is not providing you individually tailored investment advice. Nor is Lark Davis registered to provide investment advice, is not a financial adviser, and is not a broker-dealer. The material provided is for educational purposes only. Lark Davis is not responsible for any gains or losses that result from your cryptocurrency investments. Investing in cryptocurrency involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment. Investors should consult their financial adviser before investing in cryptocurrency.

    30 Comments

    1. Chop chop chop? Am I investing in bitcoin or illicit drugs?
      Listen to your post again Lark. You have the gift of the gab, but sometimes how we say something can give so much away.

    2. AMS1000X$ is also the cheapest and fastest blockchain. not to mention the only blockchain where everything can be completely on chain.

    3. If central banks can just print unlimited amounts of money then why doesn’t a gov married with the central banks just buy up all the bitcoin?

    4. The first supply cruch this year will be Dogecoin. Expect to be wow'd

      Whales buy "bags" of 1M Doge

      Supply of 1M Doge "bags" is only 144.2K

    5. We have all seen crypto with low supply tank to zero and bitcoin is no different. Its a pyramid scheme like all other investments. Everything always goes to zero in the end.
      Every single person on the planet creates inflation with the need for money. Whoever markets prices creates inflation and that is everyone.
      Very few people in the world have the will power to stop and realize omg what the hell am i doing. Contributing to the flawed society in the world
      built on capitalism is what destroys the civilization that was created. Nobody learns from history. Money creates power and power corrupts the desire to want everything.
      Preserving wealth and the slavery demand to make more money is why the global economy is collapsing to a moneyless society.

      The US government went into massive debt because the slavery to money has infected the world and every country that the US influence in its geopolitical circle and those nations will face the repercussions from a failed capitalism strategy.
      We are all slaves to money and you and everyone like you are contributing to that truthful reality. There is no currency or investment that is going to preserve your wealth. All wealth will vanish
      when the great change to a society free of slavery, capitalism and the demand for money trapping all of us in an endless loop of hyperinflation the past 200 years. It is time to wake up to that reality and put pressure
      on everyone including governments to change for the benefit of everyone. This chaos we created is having a dangerous effect on the human brain and people are losing there common sense reasoning in the world around them.

    6. Damn …. Os USA vão tomar as Bitcoin através das ETF’s lastrar os Dollars nas bitcoins e usá-las como CBDC’s .
      Vão usar a bip420 como um vírus que vai contaminar toda a rede.
      Brilhante.

    7. The next video tile should be about why BTC fundamentals constantly contradict itself like science. The strategy of not buying any more BTC for higher multiplying altcoins should be reconsidered. The goal is to buy more BTC in the bear market, but if there’s no more BTC, that strategy has to change. Ultimately, I do believe that there will be drawdowns, but maybe not as significant as before.

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