Why “there’s not going to be enough Bitcoin” according to Bitwise CEO

The parabolic run of Bitcoin in recent years has ignited debates about demand, supply, and where the broader crypto market is headed next. While many investors are focused on higher price milestones beyond $110K, Bitwise CEO Hunter Horsley believes a major real shift is on the horizon.

According to Horsley, once Bitcoin (BTC) crosses the $130,000 to $150,000 price levels, long-time holders will likely stop selling. He emphasized that many of these individuals and institutions accumulated Bitcoin years ago at much lower prices, and the recent price upticks have translated into profit-taking for the majority. 

But in his view, that trend may soon change. The higher Bitcoin climbs, the more confident holders become and Horsely believes that rather than selling, many will likely turn to alternative liquidity options that don’t require them to part with their assets. This shift could remove even more supply from circulation and put upward pressure on prices.

Not everyone agrees with Horsley’s view. Market participants argue that the inherent ‘buy-and-sell’ nature will trigger profit-seeking behavior as prices rise, resulting in more sell-offs. However, current market data supports Horsley’s thesis.

Bitcoin supply dries up 

Recent on-chain analytics has revealed a tightening BTC supply, lower short-term selling pressure, and growing signs that investors are becoming more confident in holding their Bitcoin for the long term. According to a June 10 CryptoQuant report, the amount of Bitcoin held on exchanges continues to fall.

Over the past year alone, more than 550,000 BTC has been withdrawn from centralized exchanges. The numbers build on previous findings that exchange balances have dropped to their lowest levels in over eight years, an indicator that more investors are opting to store their assets privately rather than sell them.

Also fueling the supply crunch is the growing institutional appetite for Bitcoin. From ETFs to national reserves, global financial heavyweights are building long-term positions. U.S.-listed Bitcoin ETFs launched in January now hold around 6% of the total BTC supply, and more countries are exploring creating their various dedicated Bitcoin reserves.

Unlike retail traders, these institutional investors do not chase short-term gains, supporting the idea that more Bitcoin may be taken out of circulation and held for the long haul.