Individual investors hold the majority of Bitcoin's total supply, with 69.4% of the 21 million BTC in circulation owned by private individuals. This poses a challenge for large institutions and governments looking to acquire Bitcoin due to the concentrated ownership among individuals.

Bitwise Asset Management recently revealed the distribution of Bitcoin's total supply, highlighting that around 7.5% of Bitcoin is considered lost, while funds and exchange-traded products control 6.1%. The wallet linked to Satoshi Nakamoto, the mysterious creator of Bitcoin, holds 4.6% of the supply, and governments and businesses collectively own just 5.8%.

With limited supply available, companies and governments seeking to acquire Bitcoin will need to purchase it primarily from individual sellers, setting the stage for an intriguing market dynamic between buyers and sellers.

CEO of Bitwise, Hunter Horsley, emphasized the importance of every new buyer finding a seller in the Bitcoin market. Despite consistent buying from corporates and ETFs, Bitcoin's price has faced downward pressure, underscoring the significant value held by individual investors.

The dwindling supply of Bitcoin, with only 5.7% left to be mined and OTC markets running low on available BTC, has raised concerns among analysts. Institutions turning to OTC markets for Bitcoin acquisitions may face challenges as the supply diminishes, potentially leading to a surge in Bitcoin's price.

As companies like Strategy and BlackRock continue their aggressive Bitcoin acquisitions and with Bitcoin adoption on the rise, institutions may soon need to resort to purchasing directly from exchanges, potentially driving Bitcoin's price even higher.

The looming threat of a supply shock coupled with the accelerating adoption of Bitcoin suggests a promising future for the cryptocurrency as it continues to gain traction worldwide.