Supply Squeeze Is Reshaping Bitcoin Market, Says Industry Expert
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.
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.
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.
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 GDAGDA 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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