Bitcoin’s supply on exchanges has dropped to a seven-year low, raising speculation about a potential supply shock that could drive its price toward $200,000. With increasing institutional demand and shrinking availability of BTC for sale, analysts predict a major price surge in the coming months.
Over the past five years, approximately $504 billion worth of Bitcoin has been withdrawn from exchanges, reducing the amount available for trading. This declining exchange reserve suggests that long-term holders and institutional investors are accumulating BTC, limiting supply in the open market.
At the same time, Wall Street firms and major asset managers are showing greater interest in Bitcoin. The approval of spot Bitcoin ETFs has opened doors for traditional investors, further fueling demand.
Bitcoin’s fixed supply of 21 million coins makes it a deflationary asset. With fewer coins available for trading and growing institutional adoption, demand could outpace supply, driving prices higher.
Market experts, including Bitwise CIO Matt Hougan, believe that this trend could push Bitcoin’s price to $200,000 by 2025, with some even calling that a conservative estimate.
Former U.S. President Donald Trump’s executive order prioritizing crypto industry growth has further boosted confidence in Bitcoin. His administration’s supportive stance on digital assets is expected to create a favorable regulatory environment, attracting more institutional players into the market.
Analysts believe that if institutional adoption continues and exchange reserves remain low, Bitcoin could reach new all-time highs in the next 12 to 24 months. However, factors like regulatory developments and macroeconomic conditions will also play a crucial role in determining the asset’s trajectory.
With supply tightening and demand surging, Bitcoin’s next major milestone could be $200,000, marking another historic moment for the world’s largest cryptocurrency.
