The selling point of Bitcoin's "limited supply of 21 million" is questioned by the market, as ETFs and futures create "synthetic supply" impacting the market

As Bitcoin's sell-off intensifies and falls below $70,000, its core selling point of "limited to 21 million" is being questioned by the market. Analysts point out that derivatives such as ETFs, cash-settled futures, options, and margin lending have diluted Bitcoin's scarcity, creating a "synthetic supply" that makes prices more influenced by derivatives trading rather than supply and demand.

Senior analyst Bob Kendall stated, "Once synthetic supply can be created, the asset is no longer scarce, and the price becomes a derivatives game. This is the current state of Bitcoin. Similar structural changes have also occurred in the gold, silver, oil, and stock markets."