Bitcoin supply could shrink by 25-30 percent under BIP-361, Corey Hoffstein notes

Bitcoin supply could shrink by 25-30 percent under BIP-361, Corey Hoffstein notes
BIP-361 may restrict Bitcoin supply

Corey Hoffstein analyzed the potential impact of BIP-361, suggesting that if it were implemented immediately, 25-30% of the current Bitcoin supply would become permanently inaccessible.

Hoffstein estimated that, holding other factors constant, this reduction in supply could drive Bitcoin prices up by approximately 30-50%. He added that market price movements may reflect a time-weighted probability of BIP-361 adoption.

Hoffstein has previously commented on new products in the European asset management sector, including the launch of AQR's Delphi Fusion Global UCITS Fund. He has also shared analysis on portfolio construction, noting that diversification costs can depend on the choice of funding source. His recent observations on potential Bitcoin supply shocks add to his track record of quantitative market commentary.

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