Bitcoin supply is shrinking: Will Saylor’s relentless BTC buying cause a supply shock?
2025-07-11 07:20:34
Main Idea
Bitcoin's supply is shrinking due to factors like the 2024 halving, institutional accumulation, and reduced liquidity, leading to a potential supply squeeze and increased market volatility.
Key Points
1. 93% of all Bitcoin has been mined, and 70% of the supply hasn't moved in at least a year, indicating reduced liquidity.
2. Michael Saylor's company, Strategy, holds over 2.75% of Bitcoin's total supply (582,000 BTC) and continues to accumulate, contributing to supply constraints.
3. Spot Bitcoin ETFs, like BlackRock's iShares Bitcoin Trust, are pulling coins off exchanges into cold storage, further tightening liquid supply.
4. The 2024 halving reduced miner rewards to 3.125 BTC per block, cutting Bitcoin's annual inflation rate to below 1%.
5. The top 100 Bitcoin addresses control about 15% of the total supply, raising concerns about market concentration but also reflecting long-term holding confidence.
6. Bitcoin on exchanges has dipped below 11% of total supply, the lowest since 2018, creating a 'dry market' prone to price volatility.
7. Institutional adoption is growing, with 59% of institutional investors holding Bitcoin by mid-2025, signaling its transition to a core portfolio asset.
Description
As Michael Saylor’s Strategy and other whales keep buying Bitcoin, the stage may be set for a historic supply shock.
Latest News
- US Congress prepares for ‘crypto week’ as industry urges lawmakers to act2025-07-11 13:33:08
- Peter Schiff says sell Bitcoin for silver as BTC smashes new highs2025-07-11 12:50:15
- Ethereum Foundation roadmap targets zkEVM in mainnet within a year2025-07-11 12:00:58
- Shanghai officials warm to stablecoins despite China crypto ban: Report2025-07-11 11:23:35
- Malta regulator: No MiCA licenses at risk after EU review2025-07-11 10:30:34