Retail investors accumulate more Bitcoin than miners produce, driving supply crunch and record highs.
- Retail buys more Bitcoin monthly than miners can supply.
- Bitcoin’s price breaks new all-time highs.
- Increased institutional buying intensifies the supply shortage.
Retail Investors Outpace Miners by 5,900 BTC Monthly
Retail investors, termed as Shrimps, Crabs, and Fish, are accumulating an additional 19,300 BTC monthly while miners produce only 13,400 BTC post-halving. The expansion of the balances of the so-called retail cohorts is contributing significantly to this dynamic.
Institutional investors, influenced by ETF flows and treasury holdings, are also significantly investing in Bitcoin, outpacing new supply by almost 3:1, furthering this shortage. On-chain analytics further highlight this trend, noting that “retail and small whales are accumulating over 100% of newly mined BTC each month.”
Bitcoin Price Surges to Over $118,000
Bitcoin’s price has surged over 105% year-on-year, breaking above $118,000. The supply crunch is supported by statements from MicroStrategy’s CEO projecting further price increases.
Michael Saylor, CEO, MicroStrategy, “The combination of reduced supply and growing demand has created a perfect storm for Bitcoin’s July 2025 rally”
The U.S. government’s potential Strategic Bitcoin Reserve and pro-crypto policies may further tighten supply, boosting institutional confidence and corporate treasury participation. This aligns with recent government initiatives to integrate crypto assets into national economic policy.
Institutional Demand Mirrors Past Halving Bull Markets
Similar halving supply shocks in 2013, 2017, and 2021 led to bull markets. Current metrics demonstrate a more significant supply shortage due to institutional involvement. The dynamic resembles past cycles where demand far outpaced supply.
Potential outcomes point to sustained price increases and market dominance as on-chain data shows falling exchange balances and rising illiquid supply. Research on past bull markets illustrates a clear pattern that is crucial for understanding the current scenario.
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