18 May 2025
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Bitcoin Supply Shortage May Drive Price Beyond $200K by 2025
Bitcoin is anticipated to surpass the $200K mark by the end of 2025, driven by a rapidly contracting supply. Matt Hougan from Bitwise highlights that miners are only expected to produce 165,000 $BTC this year, while demand has surged, notably with Strategy purchasing 379,800 $BTC in recent months.
Key points include:
- Total investments in Bitcoin ETFs have reached $6B.
- Governments and corporations are significantly increasing their Bitcoin acquisitions.
- Hougan predicts sellers may pause at the psychological level of $100K.
- Michael Saylor’s Strategy holds 568,840 $BTC, contributing to a deflationary supply rate of -2.33% annually.
- Institutional interest has reduced Bitcoin's volatility, now less than twice that of the S&P 500.
- Scott Melker forecasts Bitcoin could reach $250K by the end of 2025.
Overall, the combination of limited supply and increasing demand positions Bitcoin as a potentially high-value asset in the near future.