{"id":90170,"date":"2020-10-15T23:00:00","date_gmt":"2020-10-15T20:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/shorts-will-be-dead-why-dan-tapiero-expects-a-massive-bitcoin-shortage\/"},"modified":"2020-10-15T23:00:00","modified_gmt":"2020-10-15T20:00:00","slug":"shorts-will-be-dead-why-dan-tapiero-expects-a-massive-bitcoin-shortage","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/shorts-will-be-dead-why-dan-tapiero-expects-a-massive-bitcoin-shortage\/","title":{"rendered":"# \u2018Shorts will be dead\u2019 \u2014 Why Dan Tapiero expects a massive Bitcoin shortage"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2d1dfc84cd8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2d1dfc84cd8\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/shorts-will-be-dead-why-dan-tapiero-expects-a-massive-bitcoin-shortage\/#Institutional_investors_are_rushing_into_Bitcoin\" >Institutional investors are rushing into Bitcoin<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/shorts-will-be-dead-why-dan-tapiero-expects-a-massive-bitcoin-shortage\/#Supply_concerns_align_with_the_post-halving_cycle\" >Supply concerns align with the post-halving cycle<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># \u2018Shorts will be dead\u2019 \u2014 Why Dan Tapiero expects a massive Bitcoin shortage <\/strong>&#8221;<\/p>\n<div data-v-5a136f3a=\"\">\n<p dir=\"ltr\">In recent months, there has been a considerable spike in institutional demand for Bitcoin (BTC) following several high profile investments. Over time, asset manager and 10T Holdings co-founder Dan Tapiero believes this could lead to a problematic shortage in BTC.<\/p>\n<p>Alongside investments from Square, MicroStrategy and Stone Ridge, Bitcoin inflows to Grayscale Bitcoin Trust have surged.<\/p>\n<p>Based on the rapid growth of institutional investments, Tapiero warns that short-sellers could see trouble in the future.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Institutional_investors_are_rushing_into_Bitcoin\"><\/span>Institutional investors are rushing into Bitcoin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the third quarter of 2020, the Grayscale Bitcoin Trust recorded an inflow of $1.05 billion. This marked the firm\u2019s first billion-dollar quarter and also highlights record-high institutional demand. The firm\u2019s quarterly report <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/grayscale.co\/insights\/grayscale-q3-2020-digital-asset-investment-report\/\">reads<\/a>:<\/p>\n<blockquote>\n<p>\u201cGrayscale recorded its largest ever quarterly inflows, over $1 billion in 3Q20, making it the third consecutive record-breaking quarter. Year-to-date investment into the Grayscale family of products has surpassed $2.4 billion, more than double the $1.2 billion cumulative inflow into the products from 2013-2019.\u201d<\/p>\n<\/blockquote>\n<p>The timing of Grayscale\u2019s record-breaking quarter is noteworthy because it comes several months after BTC price dropped below $3,600.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"1100\" height=\"706\" alt=\"Cumulative quarterly inflows into Grayscale trusts, including Bitcoin\" src=\"https:\/\/s3.cointelegraph.com\/storage\/uploads\/view\/16b3764cee8d48a131a08e9c8a96a8e0.png\" title=\"Cumulative quarterly inflows into Grayscale trusts, including Bitcoin\"\/><\/p>\n<p dir=\"ltr\" style=\"text-align: center;\"><em>Cumulative quarterly inflows into Grayscale trusts, including Bitcoin. Source: <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/grayscale.co\/wp-content\/uploads\/2020\/10\/Grayscale-Digital-Asset-Investment-Report-Q3-2020.pdf\">Grayscale<\/a><\/em><\/p>\n<p>On March 13, Bitcoin fell $3,600 after a $1 billion worth of futures contracts were liquidated. BTC has steadily recovered ever since, eventually rising above $12,500 in early September.<\/p>\n<p>Institutional demand for Bitcoin surged rapidly after what is now referred to as one of Bitcoin\u2019s steepest falls in recent history and this indicates institutions see staying power.\u00a0<\/p>\n<p>Considering the continuous increase in Grayscale inflow from institutional investors, Tapiero <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/DTAPCAP\/status\/1316517983670411266?s=20\">said<\/a>:<\/p>\n<blockquote>\n<p>\u201cSHORTAGES of Bitcoin possible. Barry&#8217;s Grayscale Trust is eating up BTC like there is no tomorrow. If 77% of all newly mined turns into 110%, it&#8217;s lights out. Non-miner supply will get held off market in squeeze. Shorts will be dead. Price can go to any number.\u201d<\/p>\n<\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Supply_concerns_align_with_the_post-halving_cycle\"><\/span>Supply concerns align with the post-halving cycle<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The speculation about a potential supply-side crisis around Bitcoin also coincides with the post-halving cycle. Bitcoin went through its third halving on May 11 and historically, halvings lead to extended bull runs in the next two years.<\/p>\n<p>The halvings are proven to have a direct impact on BTC price, especially over the long term as the rate at which the remaining BTC supply is introduced to the market slows down.<\/p>\n<p>Bitcoin has a fixed supply of 21 million and as with each halving the amount of BTC miners can produce decreases. Hence, fewer BTC are available in the market to purchase every four years.<\/p>\n<p>In 2016, it took Bitcoin around 15 months to reach a peak after the second halving. If a similar pattern follows, a year from the most recent halving would be around the third quarter of 2021.<\/p>\n<p>Coincidentally, the current post-halving cycle is being met with unprecedented institutional demand.\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/shorts-will-be-dead-why-dan-tapiero-expects-a-massive-bitcoin-shortage\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# \u2018Shorts will be dead\u2019 \u2014 Why Dan Tapiero expects a massive Bitcoin shortage &#8221; In recent months, there has been a considerable spike in institutional demand for Bitcoin (BTC) following several high profile investments. Over time, asset manager and 10T Holdings co-founder Dan Tapiero believes this could lead to a problematic shortage in BTC&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":90171,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/storage\/uploads\/view\/5425f3016069748c0e77911987594918.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,73785],"class_list":["post-90170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/90170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=90170"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/90170\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/90171"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=90170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=90170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=90170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}