bitcoin BTC
+1.04%
According to Glassnode analysts, the fourth halving event may have caused the digital asset to decisively surpass gold in terms of issuance shortfall.
“The fourth halving marks an important milestone for Bitcoin versus gold. For the first time in history, Bitcoin’s stable issuance rate (0.83%) is lower than that of gold (about 2.3%), marking a historic milestone,” Glassnode analysts said. “It is our most scarce asset,” he said.
Last Saturday’s halving event saw block subsidies reduced from 6.25 BTC to 3.125 BTC per block, or about 450 bitcoins minted per day, the report said.
This observation was also pointed out by Ark Investment Management analyst Yassine Elmandjra, who reported in this week’s Ark Disrupt newsletter that “Bitcoin’s issuance rate following the halving has fallen below gold’s long-term supply growth rate.”
Elmandjra believes that gold’s annual issuance rate is lower than quoted in the Glassnode report, but still much higher than the annual Bitcoin supply growth rate after the halving due to block rewards.
“Last Friday, Bitcoin supply growth was halved for the fourth time in history, falling from an annual rate of about 1.8% to about 0.9%. As a result, Bitcoin supply growth has fallen below that of gold, estimated at around 1.7%. Long-term % by 2023,” Elamdjra said.
Bitcoin vs. Gold issuance rate. Image: Glassnode.
However, Glassnode analysts noted that the Bitcoin halving event’s impact on the available tradable BTC supply may diminish over the cycle, not only because of the decline in mined coins, but also because of the expanding size of the surrounding assets and ecosystem.
Bitcoin is up 0.14% over the past 24 hours, trading at $66,378 at 7:09 a.m. ET, according to The Block’s price page. Ethereum rose 2% in the same period to $3,268, according to data from The Block.
The overall cryptocurrency market capitalization rose 1% in the last 24 hours and now stands at $2.59 trillion. The GM 30 index, which represents the top 30 cryptocurrencies, rose 0.97% to 138.48 over the past 24 hours.
Bitcoin has remained above $66,000 over the past 24 hours. Image: Block.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.