The April 2024 halving cut miner rewards from 6.25 to 3.125 BTC per block, significantly limiting new supply and contributing to Bitcoin's scarcity.

This halving also reduced Bitcoin's inflation rate to less than 1% per year, coinciding with increased demand and resulting in a daily issuance of only 450 BTC.

Institutional interest in Bitcoin has surged, highlighted by BlackRock's Bitcoin ETF, which saw $6.35 billion in inflows in May 2025, tightening liquid supply on exchanges.

With significant investments from large entities and the rise of spot ETFs, institutional accumulation is further constraining the available supply of Bitcoin.

However, the concentration of Bitcoin ownership is concerning, as the top 100 addresses control about 15% of the total supply, raising questions about wealth centralization.

Notably, Michael Saylor's company, Strategy, has aggressively accumulated about 3% of the total Bitcoin supply, which raises fears of further supply constraints.

These trends indicate a slow-burning supply squeeze for Bitcoin, driven by reduced miner earnings and a reluctance from large holders to sell.

If demand continues to rise, market dynamics suggest a bullish supply shock could occur, potentially leading to significant price increases as Bitcoin approaches its scarcity limits.

As of June 2025, approximately 70% of Bitcoin supply has not moved in at least a year, indicating decreasing liquidity as more coins are locked in cold storage or held by long-term investors.

Additionally, less than 11% of Bitcoin's total supply is available on exchanges, the lowest level since 2018, which could lead to increased price volatility.

Overall, while a supply squeeze is evident, market dynamics indicate a gradual tightening rather than an explosive shortage, driven by ongoing demand from various sectors.

As of 2025, 93% of Bitcoin's total supply of 21 million coins has been mined, raising concerns about a potential supply shock following the April 2024 halving event that reduced miner rewards.