Bitcoin Pundits Warn of a Supply Shortage While Liquidity Is Actually Increasing
- Saylor, Winklevoss said spot ETFs set to spur Bitcoin shortage
- Industry pros point out there is enough supply in the market
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Liquidity in the cryptocurrency market is actually getting better since the introduction of US spot Bitcoin exchange-traded funds despite suggestions that surging demand from the ETFs will result in a supply crunch.
Bitcoin advocates such as MicroStrategy Chairman Michael Saylor and crypto exchange Gemini co-founder Cameron Winklevoss have said pent-up demand from the newly launched funds is at least 10 times as much as the number of new tokens being minted by so-called miners, fueling the more than 20% rally this year in the largest cryptocurrency. However, market data shows there is a plethora of tokens sloshing around.