Bitcoin Supply Cut: What’s Happening in the Market Now?
In April 2024, Bitcoin went through a reward reduction event, where the amount of Bitcoin given to miners was cut in half. This means fewer new Bitcoins are being created and added to the market.
After this Bitcoin supply cut, the market started to react. Bitcoin’s price slowly began to rise, as the available supply became less while the demand remained strong. Many experts had already predicted that this kind of supply drop could lead to a price increase — and now in 2025, that seems to be happening.
However, not everything is easy for everyone. Small miners are facing problems because they now earn less Bitcoin but still have high electricity and equipment costs. This has made mining more competitive, and only big or low-cost miners are able to keep going.
At the same time, large investment firms have started buying more Bitcoin through ETFs (Exchange-Traded Funds). These funds are holding large amounts of Bitcoin, which reduces the amount available for regular buyers. This creates more pressure on the supply and supports the price.
Impact:
As Bitcoin’s supply keeps getting tighter, prices might continue to rise. If big investors keep buying and holding, Bitcoin could stay strong in the coming weeks and months.