As Bitcoin adoption surges, BlackRock, the world’s largest asset manager, warns that a major supply crisis could be on the horizon. In a recent report, the firm highlights Bitcoin’s increasing institutional demand and its limited availability, arguing that supply may fall far short of demand in the coming years.

Not Enough Bitcoin for Every Millionaire

BlackRock’s analysis points out a striking fact: if every millionaire in the U.S. wanted to own just one Bitcoin, there wouldn’t be enough coins to go around. The report estimates that while Bitcoin has a theoretical 21 million coin limit, only 17-18 million are actually circulating. Additionally, 3-4 million BTC are permanently lost due to misplaced private keys.

Institutional Adoption and Scarcity

The report also highlights the growing role of Bitcoin in institutional portfolios. Since the launch of Bitcoin ETFs (ETPs) in 2024, inflows have surged, stabilizing Bitcoin’s once extreme price volatility. BlackRock suggests that a pro-crypto regulatory environment could further accelerate institutional adoption, making Bitcoin a more mainstream asset class.

Bitcoin’s Growing Value in a Debt-Heavy World

Critics often argue that Bitcoin lacks intrinsic value, but BlackRock counters this view, stating that Bitcoin’s decentralized nature, fixed supply, and increasing utility make it a compelling store of value—especially as global debt levels rise and economies shift toward a digital-first financial system.

What This Means for Investors

BlackRock’s warning of a supply squeeze reinforces the idea that Bitcoin could become even more scarce and valuable over time. With rising demand from both institutional and retail investors, price pressures could intensify in the long run.

However, as with any asset, market risks remain, and this analysis should not be taken as financial advice. Investors should conduct their own research and consider their risk tolerance before making any investment decisions.