Experts say the milestone highlights Bitcoin’s maturity, even if it isn’t an immediate price catalyst
Bitcoin has reached one of the most significant points in its 17-year history: 95% of its total 21 million supply is now in circulation. With only about 2.05 million coins left to be mined, the milestone underscores why scarcity has always been central to Bitcoin’s identity.
But analysts say the implications go far beyond simple supply numbers. The milestone serves as a reminder that Bitcoin’s monetary policy continues to function exactly as designed, even as global economic conditions shift and institutional interest grows.
Why 95% Matters — and Why It Won’t Immediately Move Prices
Thomas Perfumo, global economist at Kraken, said the new supply threshold reinforces the asset’s long-standing narrative as a form of hard digital money. “Annual supply inflation has fallen to roughly 0.8%—that’s the level of predictability you expect from a scarce asset,” he said. He added that Bitcoin’s resistance to debasement remains one of its strongest foundations.
Still, analysts caution that the milestone alone won’t trigger a sudden rally. Jake Kennis, senior research analyst at Nansen, said the remaining supply will be mined so slowly that markets have already priced in most of the impact. “The last 5% will take more than a century to complete. This is a narrative milestone, not a short-term price catalyst,” he noted.
Kennis emphasized that institutional accumulation and long-term holding patterns, not supply thresholds, are tightening available liquidity.
A Sign of Bitcoin’s Maturity, Not a Market Shock
Marcin Kazmierczak, co-founder of RedStone, said the milestone reflects Bitcoin’s evolution from a speculative early-stage asset to one with a fixed, predictable supply structure. “Scarcity matters, but what will define the next decade is whether Bitcoin’s infrastructure and financial rails can support expanding institutional participation,” he said.
He added that traders should be watching macroeconomic conditions and regulatory clarity rather than symbolic supply levels.
Mining Economics Enter a New Era
With block rewards cut to 3.125 BTC after the 2024 halving, miners are already facing rising costs. Kennis said the shift is long-term and unavoidable. Miners will increasingly depend on transaction fees rather than new Bitcoin issuance, a dynamic that may force less efficient operators out of the market.
Kazmierczak echoed this, noting that the mining sector is entering “a consolidation phase driven by efficiency and fee revenue rather than block rewards.”
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.