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Bitwise CEO Hunter Horsley has put Bitcoin’s scarcity in focus.
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Demand for Bitcoin appears to be growing rapidly.
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Bitcoin evangelist and Strategy Chairman Michael Saylor has suggested that things are set to accelerate further.
If there is one thing Bitcoiners love to harp on about, it’s the asset’s scarcity. Recently, Bitwise CEO Hunter Horsley has brought this celebrated scarcity into focus by highlighting rapidly shifting market dynamics.
“There’s just not going to be enough Bitcoin for everyone,” Horsley said in an X post on Tuesday.
Statements like these are not new in Bitcoin circles. One common rhetoric is that there are 8 billion people in the world, and there would only ever be 21 million BTC, seemingly assuming that everyone on earth would want to hold the digital asset.
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Unlike these statements, however, Horsley’s view is not purely anecdotal. Reiterating his view on Wednesday, he said that approximately 165,000 BTC will be mined this year, highlighting that in Q1 alone, public companies acquired 95,000 BTC. This suggests that at the current pace of demand, there is unlikely to be enough Bitcoin for those who currently want to hold the asset.
“Positive for Bitcoin. Supply vs demand is the basics [sic] of many monetary and economic systems,” Fundstrat Chief Investment Officer Tom Lee said in response to Horsley, highlighting that this market dynamic is likely to put bullish pressure on the asset’s price.
And the Bitcoin demand does not appear to be slowing down. Just last week, Tether, Bitfinex and SoftBank announced a new venture called Twenty One that intends to build a business around purchasing Bitcoin. Twenty One has said it plans to launch with 42,000 BTC worth nearly $4 billion on its balance sheet. Meanwhile, on Monday, Strategy (NASDAQ:MSTR) said that it had added over 15,355 BTC worth $1.4 billion to its already extensive holdings.
Public companies are not the only ones showing a strong desire for Bitcoin exposure. Bitwise investment chief Matt Hougan said on Tuesday that spot Bitcoin exchange-traded funds had raked in $3.3 billion in inflows in the past week.
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The rising demand comes as the narrative of Bitcoin as a store of value and hedge against broader market uncertainty appears to be gaining traction, as highlighted by a recent decoupling from traditional equities.
