TechFlow News: On February 5, according to CoinDesk, Bitcoin’s sell-off intensified, dropping below $70,000—the lowest level in over a year—while its core selling point of a “capped supply of 21 million coins” is now being questioned by the market. Analysts point out that derivative instruments—including ETFs, cash-settled futures, options, and margin lending—have diluted Bitcoin’s scarcity, creating “synthetic supply,” causing prices to be driven more by derivatives trading than by underlying supply and demand. Senior analyst Bob Kendall stated in a post: “Once supply can be synthetically created, the asset is no longer scarce, and price becomes a derivatives game—that is precisely Bitcoin’s current reality. Similar structural shifts have occurred previously in gold, silver, oil, and equity markets.”
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