A perfect storm is brewing in the Bitcoin market. With 95% of the total supply already mined, we’re looking at a serious supply squeeze. Not just theoretical. Real numbers, real impact.
The April 2024 halving cut the block reward to a measly 3.125 BTC. Daily issuance? Down. Way down. Meanwhile, institutional players aren’t just dipping their toes in anymore—they’re diving headfirst into the Bitcoin pool. Decentralized blockchain technology ensures these transactions remain transparent and tamper-proof across the network.
ETFs have gobbled up billions, with Bitwise alone managing nearly $4 billion by mid-2025. Do the math: miners producing 165,000 BTC annually while public companies and ETFs buy more than that. Supply and demand 101, folks.
Here’s where it gets interesting. Circulating supply has plummeted 30% in just 18 months. Think about that. Nearly a third of available Bitcoin—gone from active trading. Historical trends clearly indicate that these price spikes after halvings are becoming more pronounced with each cycle.
Long-term holders are sitting tight, and exchanges are reporting thinner order books. Translation? Not much Bitcoin for sale these days.
This isn’t just academic. We’re talking about the potential for explosive price movements. When $6 billion in ETF inflows meets a severely constrained liquid supply, something’s gotta give. And that something is usually price.
Even governments are eyeing Bitcoin reserves now. Seriously. Nations. Buying. Bitcoin. If that doesn’t signal a paradigm shift, what does?
Analysts are throwing around $200,000 price targets for 2025 like it’s no big deal. With the combination of post-halving supply restrictions and persistent demand from institutional buyers unfazed by corrections, they might be onto something.
Global economic uncertainty isn’t helping either—or is it? Bitcoin’s safe-haven narrative is gaining traction amid Treasury market turmoil and dollar weakness.
New buyer categories are emerging, drawn by the simple scarcity story.
The four-year halving volatility cycles? They might be smoothing out as institutional money provides liquidity. But make no mistake—the supply crunch is real. Bitwise’s chief investment officer predicts that when Bitcoin reaches $100,000, we’ll see an exhaustion of sellers and the next stopping point will be $200,000. And it’s spectacular.
