Bitcoin Just Became Even Scarcer.
The stock-to-flow ratio of Bitcoin just jumped 100%.
In simple terms, stock-to-flow measures how scarce an asset is.
“Stock” = the total amount that already exists.
“Flow” = the amount of new supply produced each year.
When this ratio increases, it means new supply is becoming much harder to produce compared to what already exists.
And for Bitcoin, this happens because of one key mechanism:
The halving.
Roughly every four years, the Bitcoin network cuts the block reward in half. That means 50% fewer new coins enter circulation.
Less new supply.
Same or growing demand.
Historically, each major increase in Bitcoin’s stock-to-flow ratio has preceded strong long-term market cycles.
This is why many investors compare Bitcoin to digital gold.
Unlike fiat currencies, its supply cannot be expanded by governments or central banks.
Only 21 million BTC will ever exist.
So when the stock-to-flow ratio jumps dramatically, the message from the protocol is simple:
Bitcoin just became harder to obtain.
The real question now is:
What happens to price when demand keeps growing…
but supply keeps shrinking?
#Bitcoin #BTC #Crypto #Scarcity #Macro