1. Finite Supply + Halving Mechanism
Bitcoin’s maximum supply is capped at 21 million, hardcoded into its protocol—nothing will ever change that.ReutersCME Group
The halving event (April 2024) slashed the new supply from 6.25 BTC to 3.125 BTC per block, tightening issuance even further.Cointelegraphmarkets.businessinsider.comMDPI
2. Shrinking Supply Meets Rising Demand
The amount of Bitcoin held on exchanges has dropped sharply—now below 2.5 million BTC, as traders shift holdings into cold storage or strategic reserves.CoinCentralCointelegraphDailyCoin
Institutional and whale-level accumulation—from entities like Michael Saylor’s Strategy—are removing even more liquidity from the market, paving the way for a supply shock.CCN.comCointelegraphBitday - Verified Crypto News
3. Economics of Inelastic Supply
With a supply that’s fixed and highly inelastic, Bitcoin reacts strongly to demand changes. Even modest demand surges can trigger huge price moves.CME GroupMDPI
Recent models forecast serious price upside—from current valuations to potentially $130K+ by 2028, based on scarcity trajectories.MDPIMorningstar
4. Scarcity as Price Engine
Experts stress that scarcity is a core driver: “Limited supply is like water in a desert or a game-worn jersey,” pushing price higher amid strong demand.ABC News
As Bitcoin nears its supply cap and availability drops, its appeal as digital gold strengthens dramatically.Wall Street JournalGlobal X ETFsJacksonville Journal-Courier
5. Current Market Pulse
Analysts are flagging an unfolding supply crunch: with supply drying up and exchange inventories at multi-year lows, a bullish squeeze is potentially imminent.CointelegraphBitcoin NewsCoinCentralDutch Algotrading