As Bitcoin (CRYPTO: BTC) slid back from recent highs, some market voices blamed outdated narratives such as four-year cycles or technical anomalies.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.



<h3>BTC's ‘Theoretical Infinite' Supply</h3>



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 &#34;paper BTC,&#34; short rallies, trigger liquidations, cover at lower prices and repeat the process.



&#34;One real BTC can support multiple claims,&#34; he noted, turning Bitcoin into a fractional-reserve-style market rather than a pure supply-and-demand asset.



<h3>Problem Was Greed, Not Ignorance</h3>



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.



Image: Shutterstock

Bitcoin's recent price decline has sparked debate among analysts. Veteran technical analyst Bob Kendall argues that Bitcoin's value is no longer determined by its fixed supply of 21 million coins, but rather by synthetic supply created through financial products like futures and ETFs. This shift has led to a market where one Bitcoin can support multiple claims, resembling a fractional-reserve system. Kendall attributes these changes to greed among Bitcoin advocates who sought legitimacy and Wall Street approval, ultimately compromising Bitcoin's original principles.

- Veteran technical analyst Bob Kendall argues that Bitcoin is now influenced by synthetic supply rather than its fixed 21-million limit due to the introduction of financial derivatives.  
- He claims that large market players can manipulate prices by creating "paper BTC," turning Bitcoin into a fractional-reserve market and distancing it from traditional supply-and-demand dynamics.  
- Kendall emphasizes that the transformation was driven by greed among Bitcoin advocates who sought mainstream acceptance, ultimately compromising Bitcoin's original principles.

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Bitcoin's 'Infinite' Paper Supply — Not Wall Street — Is The Real Problem, Says Analyst