MicroStrategy's BTC Holdings Are Driving Deflationary Trends in Bitcoin's Available Supply

The CEO of On-chain analytics firm, CryptoCount, Ki Young Ju has just noted that there are deflationary trends in Bitcoin where available tradable supply consistently decreases.

The CEO of on-chain analytics firm, CryptoCount, Ki Young Ju has just noted that there are deflationary trends in Bitcoin where available tradable supply consistently decreases. The contraction in Bitcoin’s supply is not due to changes in the asset or activity at exchanges and mining, but rather due to big institutions acquiring BTC.

Ki Young Ju Says the Amount of Bitcoin for Trading is Reduced Significantly

Michael Saylor, the CEO of Strategy (formerly MicroStrategy), recently bought 555,000 BTC. That amount is significant, representing a large share of all circulating BTC, and most importantly, it is not being traded or sold.

By holding these coins, Strategy is in a position to remove a large number of BTCs from the trading pool. According to Ki Young Ju, Strategy’s BTC holdings are responsible for the projected annual deflation rate of -2.23% for Bitcoin.

Simply put, over 2% of the coin’s supply that is going to be traded is reduced annually. When other institutions (besides Strategy) purchase and hold the crypto asset, the deflationary impact increases even further

Source: X @ki_young_ju

Ki Young Ju’s chart presents the total Bitcoin supply minus Strategy’s holdings. By mid-2024, the trend in the chart indicated that fewer BTCs remained for the purpose of trading. While mining adds new coins, it is overshadowed by the rate at which BTCs in institutional possession and investors’ possession increases.

Ali Predicts How Bitcoin Can Hit $115K

This squeezing of Bitcoin supply is triggering speculations among experts interested in facts beyond on-chain metrics. For instance, Market analyst Ali (@ali_charts) points out that BTC is close to overcoming a crucial resistance at $106,000.

Source: X@ali_charts

On May 10, 2025, the price of BTC was approximately $103,668 on Binance. Using the chart, it can be seen that BTC has had a recovery, bouncing back from an earlier decline and trading through critical pricing levels.

According to Ali, if BTC breaks the $106,000 resistance level, it may swing toward the $115,000 level within hours. Such price increases normally occur in scenarios where demand is high, with supply waning.