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- Nidhi Kolhapur
Nidhi Kolhapur
Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
- Reviewed by:
Zafar Naik
- Aug 08, 2025 11:55 UTC
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Wall Street’s Bitcoin Buying Spree Triggers Severe Supply Crunch
Institutions have bought 545,000 BTC in 2025, over five times more than miners have produced.
Exchange reserves hit decade lows as long-term holders and ETFs lock up supply
Analysts predict Bitcoin could hit $200K this year
Bitcoin is facing a serious supply crunch as big institutions scoop up coins faster than miners can produce them. With demand soaring and supply shrinking, the race for Bitcoin is heating up.
Could Bitcoin’s limited supply spark the next massive price surge?
Institutional Buying Sparks Supply Crunch
Institutional investors have snapped up over 545,000 BTC year-to-date, far exceeding the new supply of just 97,000 BTC mined so far. Notably, the demand is 5.6 times higher than the new Bitcoin supply, which is a huge imbalance driving the market momentum.
With a fixed cap of 21 million bitcoins, this growing demand depicts intense buying pressure from institutions, signaling strong confidence in Bitcoin’s scarcity and long-term value.
Companies like BlackRock and MicroStrategy are leading the buying spree, showing confidence in Bitcoin’s long-term value.
Samson Mow, CEO of JAN3, summed it up: “There’s not enough Bitcoin for everyone.”
Bitcoin Supply Shock Is Here?
Analyst Lark Davis believes the Bitcoin supply shock has already started. The amount of Bitcoin sitting on exchanges and OTC desks has dropped to levels not seen in almost a decade, which means there are fewer coins available for trading.
Besides, over half of all Bitcoin is held by long-term holders who don’t plan to sell, even at high prices. Once these sellers run out, prices are likely to surge until new sellers appear.
Institutional inflows into Bitcoin ETFs like BlackRock’s IBIT, is helping push Bitcoin’s price higher. Even governments have started buying and holding BTC, which shows that it is now being viewed as a reliable long-term asset.
Demand Will Keep Outpacing Supply
Bitwise CEO Matt Hougan told CNBC that constant buying from corporations and institutions is colliding with Bitcoin’s limited supply. He described this as a one-time event that will continue for years, keeping demand consistently ahead of supply.
Hougan believes this could push Bitcoin’s price to $200,000 by the end of 2025, with new all-time highs becoming a regular occurrence.
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Retail Demand Remains Strong
It is not only large institutions driving this trend. Retail traders are also buying Bitcoin faster than miners can produce it.
According to data from Glassnode, smaller investors are purchasing more than 17,000 BTC every month, which is more than the 13,850 BTC created by miners during the same period.
Will Bitcoin Hit $250K… or Even $1M?
Bitcoin is soaring, currently around $116,000. Tom Lee, Fundstrat co-founder, predicts it could hit $250,000 by 2025. He believes the growing institutional demand is breaking the traditional four-year Bitcoin cycle.
Over time, Lee says Bitcoin could even hit $1 million, driven by its scarcity, global adoption, and, like we just saw, the influence of whales and institutional investors.
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FAQs
Institutions bought 545K BTC YTD vs. only 97K mined – demand exceeds supply by 5.6x, draining exchange reserves to decade lows.
BlackRock, MicroStrategy and ETFs are accumulating BTC faster than production, creating unprecedented buying pressure that analysts say could push prices to $200K+.
Yes – small wallets (<100 BTC) absorb 17K BTC monthly, outpacing miners’ 13.85K BTC production, showing strong retail accumulation continues.
Yes 
No 
