As Bitcoin (CRYPTO: BTC) slid back from recent highs, some market voices blamed outdated narratives such as four-year cycles or technical anomalies. Others argue the issue runs much deeper.
BTC's ‘Theoretical Infinite' Supply
Veteran technical analyst Bob Kendall said Bitcoin is no longer priced by on-chain scarcity or the fixed 21-million supply.
Once financial layers were added, including futures, perpetuals, options, ETFs, lending products, wrapped BTC and swaps, Bitcoin effectively lost scarcity at the point of price discovery. Supply can now be synthetically created, making BTC trade more like gold or oil in derivatives-heavy markets.
As a result, Kendall said price is driven by the marginal buyer and the synthetic float, not physical Bitcoin. Large players can create "paper BTC," short rallies, trigger liquidations, cover at lower prices and repeat the process.
"One real BTC can support multiple claims," he noted, turning Bitcoin into a fractional-reserve-style market rather than a pure supply-and-demand asset.
Problem Was Greed, Not Ignorance
Kendall argued that Bitcoin's current issues were not caused by ignorance but by greed. According to him, many influencers and prominent Bitcoin advocates chased legitimacy, Wall Street approval, ETFs, media exposure and faster price appreciation.
In doing so, they willingly integrated Bitcoin into the traditional financial system, believing it would make them rich. The warning, Kendall said, was clear years in advance: inviting Wall Street into price discovery would destroy scarcity and transform Bitcoin into a leveraged financial product.
He added that government involvement and regulation only accelerated the shift, enabling greater control, taxation and surveillance rather than preserving Bitcoin's original principles.
Wall Street didn’t hijack Bitcoin, Kendall said — it was invited in.
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