The "limited supply of 21 million" selling point of Bitcoin is questioned by the market, as ETFs and futures create "synthetic supply" impacting the market.
ChainCatcher reported that as bitcoin's sell-off intensified and its price fell below $70,000, its core selling point of being "limited to 21 million coins" is being questioned by the market. Analysts point out that ETFs, cash-settled futures, options, and margin lending derivatives have diluted bitcoin's scarcity, creating "synthetic supply" and causing the price to be driven more by derivatives trading rather than supply and demand.
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