Tuesday, 02 January 2024 12:17 GMT

Supply Squeeze Is Reshaping Bitcoin Market, Says Industry Expert


(MENAFN- Mid-East Info) Structural shift creating unprecedented scarcity for world's leading digital asset says GDA's Abdumalik Mirakhmedov ahead of Bitcoin MENA in Abu Dhabi



Dubai, UAE, 4th December, 2025: The amount of Bitcoin available to be bought or sold today is far smaller than most people realise, and an industry expert says this is creating a historic supply squeeze that is fundamentally reshaping the market.

This shift is being driven by a combination of institutional adoption, long-term holding strategies, and a significant portion of the asset being permanently lost, creating unprecedented scarcity for the world's leading digital asset.

Abdumalik Mirakhmedov, Founder and Executive President of GDA, one of the world's leading bitcoin mining companies, says:“There can only ever be 21 million coins, and almost 20 million have already been created.

“Big investors are taking millions of Bitcoins out of circulation, while millions more are sitting unused or have been lost over time. This growing shortage could turn out to be one of the most important supply squeezes in Bitcoin's history, shaping the future of the network.”

Dubai-based Mirakhmedov, who will be among the speakers at Bitcoin MENA in Abu Dhabi next week, points to analysis suggesting that, allowing for coins held by long-term investors and an estimated 18% lost forever in inaccessible wallets, the liquid supply may be as low as six million coins.

“Producing more Bitcoin, or manipulating it, to meet growing demand is not possible,” he declares.“Unlike fiat currencies and physical commodities, there is no central authority, and after the cap is reached, no new supply will ever enter the market.

“This fixed supply structure gives Bitcoin its appeal as 'digital gold'. It also paves the way for extreme scarcity, especially when most of the remaining Bitcoin is being secured up by long-term holders and institutional investors.”

Mirakhmedov says the structural shift in the Bitcoin market, once dominated by retail traders, is being accelerated by several key developments:
  • The rise of spot Bitcoin ETFs: In the U.S. and other regions, these funds must hold physical Bitcoin in secure custody, locking vast quantities away from the active market.
  • Institutional and government adoption: Corporate treasuries, major banks offering custody, and even national governments like El Salvador are accumulating Bitcoin as a reserve asset, further reducing liquid supply.
  • Lost coins: Millions of Bitcoin, often from the network's early days, are considered permanently lost due to lost private keys or discarded hardware.

“Banks, pension funds, insurance companies, sovereign wealth funds, and other asset managers are taking a bigger role in Bitcoin,” says Mirakhmedov.“They often plan to hold it for decades, and once Bitcoin is in their hands, it almost never comes back onto the market.

“With dormant coins, institutional holdings, ETFs, government reserves, and long-term retail owners, the amount of Bitcoin you can actually buy is shrinking quickly. This isn't just market cycles or sentiment – it's a real, structural change in how Bitcoin is used, held, and valued.

“Bitcoin is shifting from a speculative investment to a store of value. Each coin that gets locked away makes this trend stronger. The supply squeeze isn't coming, it's already happening.”

Mirakhmedov will take part in a panel discussion on the role of Bitcoin mining in the global energy transition at Bitcoin MENA on 8th December at ADNEC Center Abu Dhabi. He will be joined on the Proof of Work Stage (12:00 pm-12:30 pm) by Daniel Jonsson COE of mgmt Digital Infrastructure Fund, and Ali Alnuaimi, Founder of Shafra.

About GDA:

GDA is one of the world's largest and most experienced industrial-scale Bitcoin mining companies, with a track record of building, managing, and scaling data center operations spanning nearly a decade. We champion innovation, responsible energy use, and investment in the communities where we operate globally, including the 20 data centers across North America, South America, Europe, and Central Asia. With a total power capacity of over 600 MW, the company has brought over 150,000 miners online and was named to Fast Company's 2024 list of the Next Big Things in Tech in the fintech and blockchain category. At GDA, we are committed to supporting the infrastructure for the future of money by making the Bitcoin network more robust, resilient, and secure.

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Mid-East Info

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