Bitcoin's "limited supply of 21 million coins" selling point has been questioned by the market, while ETFs and futures create a "synthetic supply" that impacts the market.

As Bitcoin's sell-off intensified, falling below $70,000, its core selling point of a "limited edition of 21 million coins" 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 its price more driven by derivatives trading than by supply and demand. Senior analyst Bob Kendall wrote, "Once a synthetic supply can be achieved, the asset is no longer scarce, and the price becomes a derivatives game, which is exactly what Bitcoin is currently experiencing. Similar structural changes have also occurred in the gold, silver, oil, and stock markets." (CoinDesk)