By 2025, Bitcoin's built-in scarcity is becoming a pressing market reality as 93% of all BTC is already mined. Following the 2024 halving event that cut miner rewards, long-term holders are keeping their coins in cold storage, limiting new supply and resulting in decreasing liquidity. Concurrently, institutional demand is on the rise, with firms like BlackRock and others investing heavily in Bitcoin. Michael Saylor's company, MicroStrategy, now holds 2.75% of the total Bitcoin supply, raising concerns over a potential supply crisis due to reduced coins available on exchanges. This situation is exacerbated by the consolidation of Bitcoin among large holders or 'whales', which challenges the original ethos of decentralization. As Bitcoin's tradable supply diminishes, the market may experience increased volatility, prompting questions about how such a supply shock could impact Bitcoin prices in the future. Overall, Bitcoin's scarcity is being stress-tested in real time, with institutional inflows and growing retail interest suggesting significant shifts in the market landscape ahead.

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