Bitcoin's scarcity is becoming a pressing reality as 93% of its total supply is now mined, leading to a tightening market. With significant portions of Bitcoin held in cold storage and long-term holders disallowing liquidity, analysts are warning of a potential supply shock that could dramatically affect prices. Michael Saylor's company, now holding over 2.75% of Bitcoin, has exacerbated this situation by persistently acquiring Bitcoin. Institutional demand is surging, driven by new investment vehicles like Spot Bitcoin ETFs, which pull coins off exchanges and further constrict supply. This concentration of ownership raises concerns about decentralization, as a few players exert substantial influence over the market. Additionally, the upcoming Bitcoin halving has limited new supply from miners to just 450 BTC daily, amplifying the liquidity crunch. While the market won't run out of Bitcoin per se, the usable supply may dwindle, leading to volatile price fluctuations. A supply squeeze is already underway, marked by increasing institutional acquisition and limited circulation. The macroeconomic environment could influence future demand, but if retail and institutional interest continues, we might see significant price surges as Bitcoin’s scarcity becomes increasingly apparent.

Source 🔗