Bitcoin Supply Crunch: A New Era for the Cryptocurrency
The Bitcoin market is facing a significant supply crunch. Institutional investors are buying up millions of coins,causing a liquidity shortage. This trend is outpacing the daily mining output, leading experts to warn of an impending imbalance. This could shift Bitcoinâs role from a volatile asset to a strategic reserve.
Corporate acquisitions are soaring, far exceeding the daily mining output. New predictions suggest trillions of dollars in institutional inflows. Long-term holders and governments are holding onto their coins, unwilling to sell. this could lead to a structural change, possibly limiting access to the worldâs leading cryptocurrency.
Centralized exchanges are running low on Bitcoin. Regulation is on the horizon, which might further restrict access. The supply is dwindling as companies like Strategy buy over 2,000 BTC daily. Miners produce only 450 BTC per day, widening the gap. Guillaume Girard and Will Owens from UTXO forecast massive institutional investments. By 2025, they expect $130 billion in institutional investments, rising to $300 billion by 2026
