- The number of BTC held by MicroStrategy at 555,000 BTC, has significantly reduced the quantity in liquid circulation.
- Since the late 2024, non-Microstrategy Bitcoin supply has been on an aggressive downtrend which is straining market availability.
- Institutional accumulation is exceeding mining output, creating sustained deflationary pressure on Bitcoin’s supply.
A noticeable decline in the available Bitcoin supply—excluding holdings by MicroStrategy—has emerged as a key development in recent market activity. For several years, Bitcoin’s circulating supply outside of MicroStrategy’s wallet witnessed steady growth. However, that trend has since reversed since mid-to-late 2024. This change is accompanied by a substantial rise in accumulation by large institutional holders. Perhaps most significantly, MicroStrategy has been buying Bitcoin at a faster rate than its network is minting.
Bitcoin Circulating Supply Enters Sharp Decline
Currently, MicroStrategy’s Bitcoin holdings stand at about 555,000 BTC. This build up has effectively removed those coins from the liquid supply. According to data from CryptoQuant, the total Bitcoin supply excluding MicroStrategy’s stash peaked in 2024 before entering a sharp downtrend. This trend reflects that Bitcoin is being withdrawn from active circulation and transferred into long-term storage.
Data provided confirms that after years of growth, the non-MicroStrategy supply dropped significantly. Notably, the sharpest decline started in the two half of 2024 and has extended to 2025. The present supply is currently floating below the 19.5 million mark which only confirms a change in Bitcoin’s market dynamics. The reported data points to no turning point in new mined coins coming to the market, a phenomenon that supports the net supply trend of reduction.
Institutional Demand Outpaces Bitcoin Supply
Bitcoin’s mining process introduces a fixed number of new coins over time. However, current institutional accumulation is outpacing that production. This imbalance creates what some observers call a deflationary pressure on the asset.
Based on the figures disclosed, the current pace of MicroStrategy’s buying implies an estimated annual supply reduction of -2.23%. That percentage only applies to the percentage of MicroStrategy’s share, and if other institutions deploy a similar strategy, the deflation could be higher.
This supply contraction presents an altered landscape. With the supply excluding MicroStrategy’s holdings declining, liquid availability has tightened. The removal of 555,000BTC from the market has not been balanced out by selling hence, further strengthening the liquidity squeeze. The implication is clear—more BTC is being locked away than produced.
Bitcoin Climbs as Supply Squeeze Deepens
Bitcoin is currently trading at $103,400.41 according to the most recent data from Coinmarketcap with the Price range in the last 24 hours ranging from $102,526 to $103,938.
This aligns with the ongoing contraction in supply, as accumulation continues to exert influence on availability. Resistance appears at $103,938, while support has held steady around $102,526.
The latest data shows that MicroStrategy’s behavior has had a measurable effect on total circulating supply. Interestingly, this takes place in a circumstance where other institutional wallets might also be in a position of holding without selling. This trend if it continues could see the limited supply of Bitcoin continue to outstrip earlier peaks in the circulating supply.
