Bitcoin's "Limited to 21 Million" Selling Point Faces Market Scrutiny, ETFs and Futures Create "Synthetic Supply" Impacting Market

Odaily As Bitcoin selling pressure intensifies, pushing its price below $70,000, its core selling point of being "limited to 21 million coins" is facing market scrutiny. Analysts point out that derivative instruments such as ETFs, cash-settled futures, options, and financing/lending have diluted Bitcoin's scarcity, creating a "synthetic supply." This makes the price more driven by derivative trading rather than fundamental supply and demand. Senior analyst Bob Kendall stated in a post: "Once you can synthesize supply, the asset is no longer scarce, and the price becomes a derivative game. This is precisely the current state of Bitcoin. Similar structural changes have occurred in the gold, silver, oil, and stock markets." (CoinDesk)