Degen

Despite concerns about the Bitcoin (BTC) supply crunch, a combination of factors is reducing the likelihood of a supply shock in 2025, according to a new report from exchange CEX.IO.

The report shows that a 9% decline in long-term dominance in 2024 led to the release of 1.58 million Bitcoins into the market, and this trend is expected to continue with another 1.4 million Bitcoins transferred in 2025.

Also, while US spot exchange-traded funds (ETFs) have absorbed over 1.13 million Bitcoins, their share of less than 4% of total trading volume and the 200,000 BTC increase in OTC platform reserves indicate a redistribution of liquidity rather than a drain.