Bitcoin Supply Crunch Intensifies as Corporate Acquisitions Rise

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Bitcoin’s effective supply has decreased in 2025 due to institutional acquisitions outpacing new mining, according to Bitwise and industry analysts.

This has created a scarcity, potentially leading to increased volatility and upward price movement.

Corporate Bitcoin Acquisitions Triple 2025 Mining Output

Bitwise reports indicate that listed companies have acquired 205,507 BTC already this year, while only 64,556 BTC were recently mined. This has intensified the scarcity of liquid Bitcoin supply.

Industry leader Vanessa Grellet highlighted how lost BTC further reduces availability, estimating 15.5 million Bitcoins effectively circulating. US government discussions about BTC purchases could exacerbate liquidity issues.

Institutional Buying Spurs Market Volatility Concerns

Institutional buying has outpaced Bitcoin mining, suggesting a growing scarcity that may fuel market volatility. This shortage impacts trading behavior and market dynamics, leading to potential price shifts.

Financial experts predict that the ongoing liquidity crunch could provoke significant upward price pressure. The implications are being discussed by major crypto investors and governments considering Bitcoin reserves.

“Bitcoin’s fixed supply of 21 million, with approximately 19.7 million already mined and an estimated 3–4 million lost forever, leaves only about 15.5 million BTC effectively circulating. If the US were to purchase 6–7% of this supply, it would actually account for 20–25% of the liquid float, creating a significant demand shock.” — Vanessa Grellet, Industry Leader, KOL Source

2025 Market Mirrors Previous Bitcoin Bull Run Conditions

Previous Bitcoin bull runs in 2017 and 2020 resulted in supply shortages, causing price surges. Current conditions resemble past scenarios, suggesting potential for price escalation.

Experts, citing past trends, suggest that continued institutional buying may drive prices higher. The scarcity of Bitcoin could lead to correlated changes in other digital assets like Ethereum.

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.