Bitcoin supply is shrinking: Will Saylor’s relentless BTC buying cause a supply shock?

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.