Wall Street’s Bitcoin Buying Spree Triggers Severe Supply Crunch

The post Wall Street’s Bitcoin Buying Spree Triggers Severe Supply Crunch appeared first on Coinpedia Fintech News

Bitcoin is facing a serious supply crunch as big institutions scoop up coins faster than miners can produce them. With demand soaring and supply shrinking, the race for Bitcoin is heating up.

Could Bitcoin’s limited supply spark the next massive price surge?

Institutional Buying Sparks Supply Crunch

Institutional investors have snapped up over 545,000 BTC year-to-date, far exceeding the new supply of just 97,000 BTC mined so far. Notably, the demand is 5.6 times higher than the new Bitcoin supply, which is a huge imbalance driving the market momentum.

With a fixed cap of 21 million bitcoins, this growing demand depicts intense buying pressure from institutions, signaling strong confidence in Bitcoin’s scarcity and long-term value.

Companies like BlackRock and MicroStrategy are leading the buying spree, showing confidence in Bitcoin’s long-term value.

Samson Mow, CEO of JAN3, summed it up: “There’s not enough Bitcoin for everyone.”

Bitcoin Supply Shock Is Here?

Analyst Lark Davis believes the Bitcoin supply shock has already started. The amount of Bitcoin sitting on exchanges and OTC desks has dropped to levels not seen in almost a decade, which means there are fewer coins available for trading.

Besides, over half of all Bitcoin is held by long-term holders who don’t plan to sell, even at high prices. Once these sellers run out, prices are likely to surge until new sellers appear.

Institutional inflows into Bitcoin ETFs like BlackRock’s IBIT, is helping push Bitcoin’s price higher. Even governments have started buying and holding BTC, which shows that it is now being viewed as a reliable long-term asset.

Demand Will Keep Outpacing Supply

Bitwise CEO Matt Hougan told CNBC that constant buying from corporations and institutions is colliding with Bitcoin’s limited supply. He described this as a one-time event that will continue for years, keeping demand consistently ahead of supply.

Hougan believes this could push Bitcoin’s price to $200,000 by the end of 2025, with new all-time highs becoming a regular occurrence.

Retail Demand Remains Strong

It is not only large institutions driving this trend. Retail traders are also buying Bitcoin faster than miners can produce it.

According to data from Glassnode, smaller investors are purchasing more than 17,000 BTC every month, which is more than the 13,850 BTC created by miners during the same period.

Will Bitcoin Hit $250K… or Even $1M?

Bitcoin is soaring, currently around $116,000. Tom Lee , Fundstrat co-founder, predicts it could hit $250,000 by 2025. He believes the growing institutional demand is breaking the traditional four-year Bitcoin cycle.

Over time, Lee says Bitcoin could even hit $1 million, driven by its scarcity, global adoption, and, like we just saw, the influence of whales and institutional investors.