Bitcoin Faces Record Supply Crunch as Institutional Demand Soars 7× Higher Than Mining Output

Data from Bitwise, Bloomberg, and Glassnode reveals that institutional demand for Bitcoin has vastly outpaced new supply in 2025, underscoring an intensifying accumulation trend among major investors.

According to the latest figures shared by Bitcoin News and sourced from Bitwise Europe, institutional entities have purchased nearly 975,600 BTC year-to-date, while only 136,500 BTC have been mined over the same period. This means institutional buying has exceeded Bitcoin’s new supply by more than sevenfold, marking the most aggressive demand imbalance ever recorded.

The data combines inflows from global Bitcoin ETPs, public treasury companies, and large-scale institutional allocators, reflecting how traditional finance continues to absorb Bitcoin at a rate far beyond its natural issuance. By comparison, during 2020–2023, institutional purchases hovered closer to parity with miner production, but 2025’s numbers reveal a structural shift in accumulation behavior.

Analysts suggest that this growing supply deficit could act as a long-term bullish driver for Bitcoin’s price, particularly as ETFs, corporate treasuries, and sovereign funds expand their exposure. With 913,000 BTC added in 2024 and nearly a million already this year, the scale of accumulation points to deep conviction among professional investors despite short-term volatility.

The imbalance also highlights a developing narrative: Bitcoin’s finite supply is increasingly being locked up by institutions, reducing available liquidity in the open market. As halving-driven issuance continues to shrink, the dynamic between mining output and institutional demand could amplify future price cycles.

Market strategists at Bitwise note that this “institutional absorption ratio”, the rate at which large buyers outpace new Bitcoin creation, could soon become one of the most important on-chain metrics to watch. If the trend holds, Bitcoin may be heading toward one of the most supply-constrained environments in its history, potentially setting the stage for renewed upward momentum heading into 2026.