Why is Bitcoin’s Supply Much Lower Than You Think?

1. Why is Bitcoin’s available supply lower than 21 million?

As millions of BTC are permanently lost, held long term, or locked in ETFs, corporate treasuries, and cold storage, they are unavailable for trading.

2. How much Bitcoin is estimated to be lost forever?

Estimates suggest between 2.3 million and 3.7 million BTC are permanently lost due to forgotten keys and destroyed wallets.

3. What role do Spot Bitcoin ETFs play in reducing supply?

Spot Bitcoin ETFs hold physical BTC in custody for long-term investment, removing large amounts of coins from daily market circulation.

4. Do long-term holders ever sell their Bitcoin?

Yes, but rarely. Most long-term holders keep BTC for years, selling only during exceptional market or personal events.

5. How does lower available supply affect Bitcoin’s price?

With fewer coins available to trade, even small increases in demand can cause sharper price movements and higher volatility.