Scarcity and Maturity Highlighted by Milestone
95% of Bitcoin's supply has now been mined, marking a significant milestone highlighting the cryptocurrency's scarcity and maturity, according to official data from industry leaders and exchanges.
This milestone reinforces Bitcoin's scarcity narrative but lacks immediate price impact, as market dynamics and miner economics adjust to smaller rewards and increased transaction fee reliance.
The milestone that 95% of the total Bitcoin supply has been mined underscores the network's maturity and scarcity. Industry experts emphasize that this threshold, while historic, serves more as a narrative event than a direct catalyst for price movement.
Expert Perspectives on the Milestone
Kraken's Global Economist, Thomas Perfumo, highlights Bitcoin’s predictable supply curve, noting market mechanics are already accounted for. Others echo that future mining will span over a century.
The milestone reinforces Bitcoin’s credibility as a uniquely scarce asset with a predictable supply curve, but these thresholds are not direct price catalysts. — Thomas Perfumo, Global Economist, Kraken
Market Reaction and Future Dynamics
The immediate market reaction to this milestone had no significant price surge. Bitcoin briefly dipped below $93,000, later rebounding to ~$94,000, with more reliance on transaction fees anticipated as mining rewards decrease.
Experts like Marcin Kazmierczak of RedStone Oracles stress that macro factors and regulatory developments weigh more heavily on near-term prices than mining milestones. Institutional ownership remains steady, a testament to Bitcoin’s standing as a scarce asset.
Bitcoin miners face increased operational challenges as future halvings will squeeze profits, pushing less efficient operations out. Jake Kennis of Nansen suggests fee reliance poses long-term questions for network sustainability amid declining block rewards.
Market comparisons often bring up assets like Ethereum but BTC remains unmatched in scarcity and issuance consistency. Historical analysis shows previous supply milestones did not yield immediate price changes, reinforcing the narrative-focused nature of this event.