The facility purchased 545,000 BTC in 2025. This is more than five times the miners produced.
Exchange reserves reach a 10-year low as long-term holders and ETFs lock supply
Analysts predict that Bitcoin could reach $20,000 this year
Bitcoin is facing a serious supply crunch as large institutions scooped up coins faster than miners could produce them. As demand skyrockets and supply shrinks, the Bitcoin race is intensifying.
Could a limited supply of Bitcoin cause the next major price surge?
Institutional Buy Spark Supplies Crunch
Institutional investors are well above the new supply of just 97,000 BTC mined so far, exceeding over 545,000 BTC per year. In particular, demand is 5.6 times higher than the supply of new Bitcoin, a major imbalance driving market momentum.
Demand for the #bitcoin agency is buying new supply at $545,579 BTC.
It only has $21 million in BTC. pic.twitter.com/owr1tswrhv
-August 8, 2025
This growing demand, with a fixed cap of 21 million Bitcoin, portrays intense buying pressure from institutions, indicating strong confidence in Bitcoin’s rarity and long-term value.
Companies like BlackRock and MicroStrategy have shown confidence in the long-term value of Bitcoin and are leading the purchase.
Jan3 CEO Samson Mow summed up “No one has enough Bitcoin.”
There isn’t enough #bitcoin for everyone.
– Samson Mow (@excellion) July 10, 2025
Is the Bitcoin supply shock here?
Analyst Lark Davis believes the Bitcoin supply shock has already begun. The amount of Bitcoin sitting at the exchange and OTC desk has dropped to levels not seen in almost a decade. This means that there are fewer coins available for trading.
What’s more, more than half of all Bitcoin is held by long-term holders who don’t plan to sell at high prices. Once these sellers are gone, prices can skyrocket until new sellers appear.
Institutional influx into Bitcoin ETFs like BlackRock’s IBIT is helping to raise the price of Bitcoin. Even the government has begun buying and holding BTC. This indicates that it is currently considered a reliable long-term asset.
Demand continues to outperform supply
Bitwise CEO Matt Hougan told CNBC that constant purchases from businesses and institutions are colliding with the limited supply of Bitcoin. He described this as a one-off event that lasts for years and will consistently maintain demand ahead of supply.
Hougan believes this will push Bitcoin prices to $200,000 by the end of 2025, with new all-time highs coming regularly.
Retail demand continues to be strong
It’s not just the large institutions driving this trend. Retailers are also buying bitcoin faster than miners can produce.
According to GlassNode data, fewer investors buy over 17,000 BTC per month. This exceeds 13,850 BTC created by miners in the same period.
The shrimp to fish cohort (<100 $btc wallet) continues to absorb supply faster than it was created. Monthly balance growth exceeds +17k #BTC - +13.85K $ Over BTC Issuance - Adding 10K #BTC in Eli alone, highlighting a permanent retail-driven accumulation. pic.twitter.com/eo7padzhsg
– GlassNode (@GlassNode) August 8, 2025
Does Bitcoin reach $250K… or $1 million?
Bitcoin is rising, currently at around $116,000. FundStrat co-founder Tom Lee predicts it could reach $250,000 by 2025. He believes that growing institutional demand is breaking the traditional four-year Bitcoin cycle.
Over time, Lee says that Bitcoin can even reach $1 million, driven by its rarity, global adoption, and, as we have seen, whales and institutional investors’ influence.