🌎 Bitcoin Scarcity Looms Amid 95% Mining Completion

Bitcoin Scarcity Looms as Over 95% of Total Supply is Mined

Bitcoin has crossed the 19.96 million mark, meaning over 95% of the total Bitcoin supply has been issued. The largest cryptocurrency is approaching a scarcity amidst fast-paced BTC withdrawals from exchanges. Developments like institutional adoption and Layer 2 rollout on BTC could catalyze demand for the digital asset.

Bitcoin Scarcity and Demand Drivers

The supply of Bitcoin on exchanges has decreased by nearly 15% since the declaration of the U.S. Presidential election results in November 2024. In the same timeframe, the supply outside of exchanges has climbed from 17.99 million to 18.3 million. Typically, a decline in supply on exchanges and an increase in BTC tokens held by wallets outside of exchanges is considered a bullish sign for the digital asset.

The volume of BTC held on exchanges has hit its lowest level in nearly three and a half years. A drop in exchange supply eases selling pressure, and consistent demand historically drives prices higher.

U.S. Strategic Bitcoin Reserve Progress

U.S. President Donald Trump has suggested the creation of a Strategic Bitcoin Reserve, considered a game-changing development in crypto. The proposal to hold Bitcoin as a reserve asset solidifies demand for the token from the U.S. The administration currently holds almost 200,000 Bitcoins, seized through criminal investigations conducted by the FBI.

According to a recent report, the government has previously sold its BTC holdings, however, it is less likely in the Trump administration as the idea of a Bitcoin reserve is discussed. The finite supply of Bitcoin has garnered advocates who believe that “scarcity adds value” and that holding BTC tokens in reserve would appreciate in value in the long term.

Bitcoin Layer 2 Protocols

Kevin Liu, founder and CEO of GOAT Network, discussed technological advancements on the Bitcoin blockchain and commented on the feasibility and future of Bitcoin Layer 2 protocols. Liu said, “It only makes sense to offer numerous ways for that growing number of users to engage (with Bitcoin).”

Liu told Crypto.news that numerous large institutions are rolling up their sleeves to learn more about Bitcoin Layer 2 networks and BTCFi. “Both institutions and individual users don’t want to sell their Bitcoin. They want to put it to work, earning real BTC yield.”

Whales and Institutions Don’t Want to Sell Bitcoin

Crypto intelligence tracker Santiment predicts an incoming capitulation in Bitcoin. In crypto, capitulation is when a large number of investors sell an asset due to fear of a steeper correction in the token’s price, and a prolonged price drop is typically followed by a recovery in the token’s price.

Santiment evaluated the number of non-empty wallets on the Bitcoin blockchain and identified a decline, meaning retail traders and investors are likely dumping their holdings for fear of losses, while whales and large entities continue to accumulate BTC.

Bitcoin Price Forecast for February 2025

Evaluating derivatives market data, it is observed that traders are expecting some upside but with capped potential. Dr. Sean Dawson, Head of Research at Derive.xyz told Crypto.news that, “We’re experiencing a temporary lull in volatility as the market recovers from last week’s turbulence caused by Trump’s tariff announcements.”

To forecast Bitcoin price for February 2025, we analyze the weekly and daily price chart for BTC/USDT. On the daily timeframe, technical indicators support a bullish thesis and a likely return to test the all-time high of $109,588.

While there is a possibility of a correction, a recovery is likely, and the $100,000 milestone is a key level to watch in the coming weeks.