This is Why Bitcoin Could Face a Supply Shock Soon
Bitcoin could face a major supply shock as exchange reserves hit years of lows. Encrypted data shows the reserves since the data was recorded in 2022.
Furthermore, despite price turbulence, demand for Bitcoin still comes from long-term holders. This supply shock could be a major bullish signal in the coming months.
Will Bitcoin cause supply shock?
As Bitcoin has reached a new era of market integration and institutional recognition, companies and individuals Whales are getting as many as possible.
Last month, the ETF issuer was Buy it 20 times faster than miners produce it It, they Overall more than nakamoto. However, due to these trends, the supply of Bitcoin Danger.
![Bitcoin exchange reserves at new lows](https://i0.wp.com/beincrypto.com/wp-content/uploads/2025/02/Screenshot-2025-02-11-at-9.50.43-AM.png?resize=814%2C375&ssl=1)
As encrypted data shows, about 2.5 million BTC is currently held in the exchange reserve. This is the minimum reserve balance in nearly 3 years.
Additionally, U.S. Bitcoin ETF issuers and other companies, Whale are very flashy buyers, but 69% of the supply is held by individuals. In fact, ETFs have recently had their first weekly outflow in 2025, indicating that the problem is beyond them.
![](https://i0.wp.com/beincrypto.com/wp-content/uploads/2025/02/image-112.png?resize=814%2C259&ssl=1)
In other words, the Bitcoin supply crisis is now very real. In addition, the vast majority have been mined, with only 5.7% remaining. The most important thing is Unknown quantity lost. A slight increase in demand may initiate a new bullish cycle.
This requirement may be realizing Although Bitcoin’s price has dropped recently. This week, the market witnessed Rapid spikes in permanent holder demandindicating the strong confidence of individual users. These holders also sell less frequently. These factors can combine to create a Bitcoin supply shock.
“Low, every billionaire will buy a billion dollars in Bitcoin, and the supply shock will be so big that we will stop measuring BTC based on Fiat.” explain Michael Saylor in a recent interview.
Another consideration US Bitcoin Reserve There are many other countries. In the United States, 20 states have proposed bills to establish strategic Bitcoin reserves. If such strategies are approved, state and national governments will purchase BTC and supply will drop further.
Therefore, at the current level, the Bitcoin supply chain is imminent. However, Macroeconomic factors(such as interest rates and global tariffs) will also play a key role.
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