Brace yourselves, Bitcoin enthusiasts! The party might be about to get wild, and it's all thanks to a rapidly shrinking supply of the world's most famous cryptocurrency.

According to a recent analysis by Bybit, the well of Bitcoin readily available on exchanges is running dry. Their data suggests only 2 million BTC remain on these trading platforms, a mere fraction of the total supply. This situation is being fueled by two major forces: the insatiable appetite of Bitcoin Spot ETFs and the impending Bitcoin halving event.

Spot ETFs on a Bitcoin Binge: Since bursting onto the scene in January, these investment vehicles have gobbled up a staggering $12.4 billion worth of Bitcoin. This translates to roughly 221,000 BTC disappearing from circulation – a bigger market shock than even the upcoming halving!

The Halving Squeeze is Here: Buckle up, because the halving, scheduled for later this week, is about to cut Bitcoin's daily supply issuance in half – for the fourth time ever. This means the number of new Bitcoins entering the market will plummet from 900 to 450, further intensifying the supply shortage.

But is this a recipe for disaster?

Bybit suggests there could be a short-term selloff, particularly from struggling miners forced to unload their reserves to stay afloat. However, this selling pressure is expected to be temporary. Once miners exhaust their stockpiles, the overall supply entering exchanges will dwindle even faster.

So, what does the future hold?

Bybit believes this unprecedented situation could lead to a Bitcoin bonanza. They point to historical trends, suggesting a price surge typically follows a halving event. Could this be the time Bitcoin finally smashes through its all-time high?

A word of caution: Bybit's analysis might be a tad optimistic. Recent data indicates a slowdown in ETF inflows, potentially linked to the recent Bitcoin price dip. Geopolitical tensions and tax season jitters could also be contributing factors.

The coming months will be a nail-biting ride for Bitcoin investors. Will the supply squeeze trigger a historic price explosion, or will other factors dampen the party? One thing's for sure – the next chapter in the Bitcoin saga is about to unfold, and it promises to be anything but dull.