Institutional investors are driving Bitcoin’s supply crunch, pushing the cryptocurrency towards unprecedented heights. These buy-ups from hedge funds and corporations, coupled with the halving event, have significantly impacted Bitcoin’s supply. This situation could potentially lead to a price surge for BTC, reaching a record high of $500,000 in the near future. 23% of Bitcoin is now owned by institutional investors like hedge funds, further emphasizing this trend. 2025 will mark a turning point with mid-tier holders’ share reaching 23.07%. Regulatory clarity and market confidence are driving institutional capital into Bitcoin. The halving event, which reduced daily issuance from 2,880 to 1,440 coins, has amplified supply constraints. This effect is compounded by the fact that many Bitcoin coins are either lost or held for long periods, leading to increased demand and price volatility.