Bitcoin Hits 95% Supply Milestone

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95% of Bitcoin is now in circulation, leaving just 2M to be mined over the next century.
Milestone emphasizes scarcity and institutional adoption, not immediate price gains.
Mining economics shift toward efficiency and transaction fees as supply growth slows.

Bitcoin has officially crossed a major supply milestone, with 95% of its 21 million cap now in circulation. This means roughly 19.95 million Bitcoin are already mined, leaving just 2.05 million coins to be discovered over the next century. Nearly 17 years after Satoshi Nakamoto launched the network in 2009, Bitcoin’s predictable issuance schedule continues to reinforce its reputation as digital gold.

A Milestone of Scarcity, Not Price

While some speculate that limited supply should trigger a price surge, experts caution that the 95% threshold is more symbolic than market-moving. Jake Kennis, senior research analyst at Nansen, notes that the remaining 5% of Bitcoin will take well over a century to mine due to halving events, making this milestone a narrative highlight rather than a direct catalyst.

Instead, the event validates Bitcoin’s long-term scarcity and digital gold narrative. Institutional players and core holders increasingly lock up Bitcoin, emphasizing its value as a store of wealth rather than a short-term trading asset.

Mining Economics Under Pressure

The milestone also has implications for miners. After the April 2024 halving, block rewards dropped to 3.125 Bitcoin, pushing miners to depend more on transaction fees. As supply growth slows further, miners must improve efficiency or consolidate, changing the landscape of Bitcoin mining.

Thomas Perfumo, global economist at Kraken, highlights that Bitcoin’s annualized supply inflation is now just 0.8%, reinforcing its hard money qualities. “Bitcoin uniquely combines global settlement functionality with the certainty of scarcity,” he said, comparing it to a masterpiece like the Mona Lisa.

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Bitcoin’s Maturity and Institutional Adoption

Experts agree that the milestone signals Bitcoin’s maturity. Marcin Kazmierczak, co-founder of RedStone, emphasizes that while hitting 95% doesn’t directly move markets, it marks a shift from a growth-phase asset to one with fixed, predictable scarcity. This predictability is critical for institutional adoption, but market movements will still depend on macroeconomic factors, regulatory clarity, and broader adoption trends.

In short, the 95% supply milestone is a testament to Bitcoin’s design and resilience. It reinforces scarcity, challenges miners to adapt, and strengthens the narrative of Bitcoin as a long-term store of value—but it’s unlikely to spark an immediate price rally.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.