Bitcoin’s Market Supply to Shrink by 42% by 2032, Says Fidelity
Fidelity estimates that 42% of the Bitcoin supply will become illiquid by 2032, which would mark a significant change in the scarcity and market dynamics.
Fidelity Digital Assets forecasts a substantial change in Bitcoin supply in the market in 2032. According to the company, almost 42 percent of the circulating supply of Bitcoin is.
Approximately 8.3 million coins will be put in an illiquid state, assuming the current accumulation patterns remain the same. This forecast indicates an increasing shortage due to an increase in coins out of circulation.
Illiquid supply is determined by fidelity as Bitcoin has not moved in seven or more years, and BTCs owned by publicly traded companies owning 1,000 or more BTC.
These groups collectively create a group of people who gradually gain more and more holdings every day. By the conclusion of 2025, they will hold more than six million Bitcoin, approximately 28 percent of the total amount.
The public companies are further reported to possess close to 1 million BTC, or approximately 4.6 percent of the supply of Bitcoin.
This revolution signifies the end of the period of plenty to the age of paucity. Early Bitcoin users thought of it as a free resource, and some of the faucets gave out coins without any charge in 2010.
Today, the institutional demand and limited fixed supply introduce a scarcity relationship that may drive prices up. This trend is increased by the fact that public companies and long-term holders seem focused on keeping Bitcoin instead of selling it.
Holding Surge by Public Companies Lead.
Institutional adoption is a significant move towards increasing illiquid supply. There are 1,000 or more Bitcoins in the possession of over 100 publicly traded companies.
There was a 35% upward jump in institutional purchases in early 2025 alone, which is indicative of bigger corporate treasury plans. The holdings of this cohort are more than 969,000 BTC, worth more than 100 billion by the middle of 2025.
Notable companies such as Bitcoin Standard Treasury and Riot Platforms are contributing to the increase of corporate impact on the supply of Bitcoin on the market.
The rise in corporate holdings is also a factor in the tightening of supply. Fidelity appreciates the consistent quarter-to-quarter increase in these illiquid holdings as opposed to the volatile retail activity.
This increasing scarcity may impact the price volatility and the market structure in the future.
A New Era of Bitcoin Scarcity
The increasing illiquid supply of Bitcoins is an indicator of a structural change. Long-term loyal customers and corporate treasuries with cash are eliminating huge portions of Bitcoin in circulation.
This tendency could be fastened as the institutional interest increases and has the potential of becoming adopted by the nation-state in the future.
Fidelity warns, though, that concentrated ownership may be risky. Big players can choose to move in and out at any time and cause shocks in the market.
However, there are already signs that the majority of holders are more likely to accumulate, which is why the narrative of scarcity that shapes the future of Bitcoin is becoming increasingly popular.
This changing environment is paramount to investors. Supply limitations could fuel price appreciation and volatility as Bitcoin shifts to scarcity. Investors will respond to tighter supply, which will affect Bitcoin’s position as one of the most popular crypto assets.
You May Also Like
CME Group to launch options on XRP and SOL futures
Michael Saylor’s Strategy Adds $836M in Bitcoin Despite Market Volatility
Highlights: Michael Saylor’s Strategy added $836M in Bitcoin, extending its streak of acquisitions. Strategy now holds 649,870 BTC, valued at $48.37 billion at an average price of $74,433. The company raised funds for the purchase through preferred stock issuance, avoiding common share sales. The prominent corporate Bitcoin holder, Strategy, made another major acquisition last week. The company added 8,178 more BTC to its collection for $835.6 million at an average price of $102,171 per coin. The total Bitcoin holdings of the company grew to 649,870 BTC, valued at $48.37 billion, for an average price of $74,433 per coin following this latest purchase. This acquisition happened at a time when the cryptocurrency market was undergoing significant volatility. The price of Bitcoin has recently declined from highs of $107,000 to $93,000. As of this writing, BTC is trading around $93,619, down by almost 1% over the last 24 hours. Despite these fluctuations, Strategy has continued, showing its confidence in Bitcoin as a store of value. Strategy used its preferred stock issue to fund this bitcoin purchase instead of relying on the sale of common shares. The company raised $704 million through its STRE (Steam) offering and another 136.1 million from its sales of STRC, STRF, and STRK preferred stocks. This strategy gave the firm the ability to avoid diluting current shareholders through the issuance of more common stock, which would have been detrimental to the current performance of MSTR stock. Strategy has acquired 8,178 BTC for ~$835.6 million at ~$102,171 per bitcoin and has achieved BTC Yield of 27.8% YTD 2025. As of 11/16/2025, we hodl 649,870 $BTC acquired for ~$48.37 billion at ~$74,433 per bitcoin. $MSTR $STRC $STRD $STRE $STRF $STRK https://t.co/HI1TeYOvQ9 — Michael Saylor (@saylor) November 17, 2025 Strategy Remains Confident Amid Stock Price Pressure Strategy adding $836M in Bitcoin coincides with the sustained pressure on the company’s stock price. MSTR stock has declined sharply and has lost more than 30% of its value over recent months. Currently, MSTR stock is trading at around $195, a drop of 1.45% since the previous close. In addition, the purchase occurred as the firm saw its market Net Asset Value (mNAV) decline over the last few months. Its mNAV has plummeted to 0.94 compared to the year-to-date high of more than 3. However, the metric has recovered to 1.18 as of this writing. Source: Strategy However, Michael Saylor and his team have reaffirmed their commitment to Bitcoin. The company has been purchasing Bitcoin on a daily basis regardless of the market fluctuations. Recently, Saylor refuted claims that the company was selling its Bitcoin during the price drop, noting that the company has been steadily buying additional BTC. Bitcoin Strategy Continues Despite Market Skepticism Peter Schiff, a renowned Bitcoin skeptic, recently raised questions about the strategy used by Michael Saylor. Schiff denounced the financial framework of Strategy, labeling it a fraud. According to him, the company will find itself in financial instability due to its overdependence on high-yield preferred shares. As Schiff points out, the business model of the company has the potential to create a death spiral in case investors lose their confidence and offload their holdings within the preferred shares. MSTR’s business model relies on income-oriented funds buying its “high-yield” preferred shares. But those published yields will never actually be paid. Once fund managers realize this they’ll dump the preferreds & $MSTR won’t be able to issue any more, setting off a death spiral. — Peter Schiff (@PeterSchiff) November 16, 2025 Even with these criticisms, Strategy stands firm in its belief that Bitcoin is a valuable asset. The firm has amassed Bitcoin over the years, including in both bull and bear market cycles. eToro Platform Best Crypto Exchange Over 90 top cryptos to trade Regulated by top-tier entities User-friendly trading app 30+ million users 9.9 Visit eToro eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.
