Bitcoin has once again taken center stage due to changing dynamics of demand and supply. Predictions indicate a decrease in supply and a growing interest from investors and institutional players.
Bitcoin Scarcity and Current Supply
Bitcoin has a fixed supply cap of 21 million coins. According to blockchain data, around 19.6 million bitcoins have been mined, making up about 93.3% of the total supply. Roughly 1.4 million BTC remains to be created, and this number is decreasing each day. With the recent halving reducing block rewards from 6.25 BTC to 3.125 BTC, the daily issuance of new coins has dropped to about 450 BTC per day.
Increasing Institutional Demand
Despite the reduced supply, institutional demand for bitcoins continues to grow. Since the approval of Bitcoin ETFs by the U.S. Securities and Exchange Commission, institutional investors have poured billions into the asset. Examples include the ETF assets like BlackRock’s iShares Bitcoin Trust, which alongside others have absorbed significant volumes of BTC.
The Future of Bitcoin in the Market
There is a view that the market may face a Bitcoin shortage as demand exceeds supply. With an upcoming halving in 2028 that will further cut block rewards, pressure on circulating supply is expected to intensify. While data shows demand rising, there is also a decline in reserves on exchanges, indicating a potential change in asset availability.
It is expected that the combination of diminishing supply and increasing institutional demand will lead to new changes in the Bitcoin market. While it remains unknown how this will affect the price, one thing is clear: Bitcoin's architecture ensures its scarcity.
