Bitcoin is facing a severe supply shortage as major institutions accumulate faster than the rate of new mining.
The volume of demand far exceeds the new supply created, driving strong buying pressure and the potential for long-term price increases from scarcity and confidence in Bitcoin's value.
MAIN CONTENT
Institutions have accumulated over 545,000 BTC, 5.6 times the new supply from mining.
The supply of Bitcoin on exchanges has sharply decreased, causing a real supply shock phenomenon.
Individual investors are also buying aggressively, along with price forecasts that Bitcoin could reach 200,000 – 250,000 USD by 2025.
How does institutional buying cause supply shortages?
So far, institutional investors have purchased over 545,000 Bitcoin, far exceeding the 97,000 BTC newly mined in the year. The demand is 5.6 times the new supply, indicating a severe imbalance that creates significant upward price pressure on the market.
With a maximum limit of 21 million Bitcoin, the active buying trend of institutions like BlackRock and MicroStrategy reflects strong confidence in the long-term value and scarcity of Bitcoin.
There is not enough Bitcoin to meet everyone’s needs.
Samson Mow, CEO of JAN3
This is clear evidence that the supply of Bitcoin is being squeezed by high demand from individuals with significant purchasing power, reinforcing the scarcity status of this asset.
Has the Bitcoin supply shock phenomenon appeared yet?
According to analyst Lark Davis, the supply shock phenomenon has begun as the amount of Bitcoin on exchanges and OTC has dropped to the lowest levels in nearly a decade. This reduces the amount of available coins for trading, contributing positively to the price.
Moreover, more than half of the total Bitcoin is held by long-term investors, who do not intend to sell even if prices rise sharply. When this selling supply runs out, Bitcoin's price could continue to surge until new sellers appear.
The flow of funds into Bitcoin ETFs like BlackRock's IBIT also positively supports price increases, along with the participation of governments in various countries in holding BTC as a long-term store of value.
Will demand continue to exceed supply in the future?
Matt Hougan – CEO of Bitwise – stated that continuous buying power from institutions and enterprises will last for many years to come, creating a prolonged discrepancy between the demand and supply of Bitcoin. He believes that this phenomenon is a one-time event that will have a long-lasting impact on the market.
Hougan predicts that Bitcoin's price could reach 200,000 USD by the end of 2025, with new peaks being established regularly due to demand exceeding supply.
The ongoing buying from institutions will keep demand sustainably exceeding supply for many years.
Matt Hougan, CEO of Bitwise, 2025
The continuity of this trend not only reinforces the scarcity phenomenon but also promotes Bitcoin to be increasingly regarded as a long-term store of value.
The role of individual investors in the Bitcoin demand trend
Not only institutions, individual investors are also buying Bitcoin faster than the amount of coins newly created from mining. According to Glassnode, retail investors are purchasing over 17,000 BTC monthly, exceeding the mining output of 13,850 BTC during the same period.
The network of personal wallets, from small to large, continuously absorbs supply, demonstrating strong and consistent accumulation by retail investors, creating a solid foundation for Bitcoin's price.
This trend shows that the Bitcoin market is being reinforced by both demand from institutions and individuals, increasing growth momentum and stability.
Can Bitcoin reach 250,000 USD or even 1 million USD?
Currently, Bitcoin is trading around 116,000 USD. Tom Lee – co-founder of Fundstrat – predicts that Bitcoin could reach 250,000 USD by 2025. He believes that the strong institutional demand is breaking the traditional 4-year cycle of Bitcoin.
Tom Lee also emphasized that in the long run, Bitcoin's price could reach 1 million USD, thanks to increasingly evident scarcity, global acceptance, and the influence of whales and large institutional investors.
Frequently Asked Questions
Why is the supply of Bitcoin so scarce right now?
Due to large institutions purchasing Bitcoin in amounts far exceeding the newly mined amount each year, along with many long-term investors not selling, it leads to a tightening of supply in the market.
What is Bitcoin Supply Shock?
This is the phenomenon of the market experiencing a shortage of Bitcoin for trading due to scarce supply, significantly increasing the price and attractiveness of the asset.
How does institutional demand affect Bitcoin's price?
Strong buying from institutions creates sustainable upward price pressure, contributing to pushing Bitcoin's price to record highs and maintaining growth trends.
What role do individual investors play in the current trend?
Individual investors are also buying in faster than new supply, contributing to making the supply of Bitcoin in the market even scarcer.
Is the price forecast of Bitcoin 200,000 – 250,000 USD feasible?
Experts and leaders of major funds highly evaluate this possibility, based on trends in supply and demand, strong institutional participation, and current market indicators.
Source: https://tintucbitcoin.com/bitcoin-cau-tang-khan-hiem-nghiem-trong/
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