Bitcoin Supply Shock? Analyst Predicts Demand Surge in 2025

Bitcoin Demand Set to Skyrocket Post-Halving

Bitcoin is currently trading around $108,716, but underlying market dynamics suggest a potential breakout. Both retail and institutional investors are increasing their accumulation of BTC, signaling strong demand.

Corporate Bitcoin Adoption Accelerates

André Dragosch, European head of research at Bitwise, highlighted the accelerating pace of corporate Bitcoin adoption. In July and August alone, 28 new Bitcoin treasury companies were created, adding over 140,000 BTC to aggregate corporate holdings.

This figure nearly equals the total amount of new Bitcoin mined annually (approximately 164,000 BTC), demonstrating how quickly corporate demand is absorbing available supply.

Challenging the Post-Halving Peak Narrative

Dragosch addressed the popular theory that Bitcoin will “top out” in 2025 due to historical post-halving cycles. He argues that this viewpoint overlooks the current scale of institutional demand.

Bitwise data indicates that as of August 29, 2025, institutional demand has absorbed over 690,000 BTC, while new supply is just over 109,000 BTC. This makes demand approximately 6.3 times larger than supply.

This extraordinary imbalance suggests that halving-driven supply dynamics may have less impact in the current era of institutional adoption.

Retail Investors “Stacking Relentlessly”

Dragosch also pointed to strong retail buying as another key driver. He noted that accumulation across all Bitcoin wallet cohorts—from small holders to whales—has reached its highest level since April. Investors appear to be “stacking relentlessly.”

The synchronized accumulation across wallet groups historically precedes major upside moves, making the current environment particularly noteworthy for Bitcoin bulls.

Price Analysis Highlights

(All times are UTC)

• Bitcoin traded in a narrow $1,285 range between Aug. 30 15:00 UTC and Aug. 31 14:00 UTC, peaking at $109,518.96.
• Resistance held firm near $109,500 on a volume spike of 6,077 BTC.
• Support formed around $108,350–$108,400, where buyers stepped in.
• A surge in volume to 8,272 BTC at 13:00 UTC pointed to institutional participation.
• Volatility remains elevated after the sharp drop from $124,500 earlier in August.
• BTC is still below key $110,500 resistance, and analysts caution that a test of the $100,000 psychological level cannot be ruled out.