Bitwise CEO Warns: The Coming Bitcoin Supply Crunch Will Shock the Market
The Bitcoin halving has come and gone—now the real scarcity crisis begins.
Bitwise''s chief executive dropped a bombshell prediction this week: institutional demand is about to collide with shrinking supply, creating the perfect storm for BTC''s next parabolic move.
The math doesn''t lie
With daily ETF inflows swallowing 10x the new coins mined post-halving, Wall Street''s new favorite asset class is eating its own tail. Meanwhile, retail investors still think they''ve got time to ''wait for a dip.''
HODLers win again
Long-term holders now control record amounts of illiquid supply. Exchanges? Their reserves haven''t been this low since the last time your banker called crypto a ''fraud.''
As traditional finance scrambles to grab coins before the music stops, one thing''s clear: the ''digital gold'' narrative just got its strongest validation yet—and the suits are late to the party as usual.
Bitcoin supply dries up
Recent on-chain analytics has revealed a tightening BTC supply, lower short-term selling pressure, and growing signs that investors are becoming more confident in holding their Bitcoin for the long term. According to a June 10 CryptoQuant report, the amount of Bitcoin held on exchanges continues to fall.
Over the past year alone, more than 550,000 BTC has been withdrawn from centralized exchanges. The numbers build on previous findings that exchange balances have dropped to their lowest levels in over eight years, an indicator that more investors are opting to store their assets privately rather than sell them.
Also fueling the supply crunch is the growing institutional appetite for Bitcoin. From ETFs to national reserves, global financial heavyweights are building long-term positions. U.S.-listed Bitcoin ETFs launched in January now hold around 6% of the total BTC supply, and more countries are exploring creating their various dedicated Bitcoin reserves.
Unlike retail traders, these institutional investors do not chase short-term gains, supporting the idea that more Bitcoin may be taken out of circulation and held for the long haul.
