95% of Bitcoin Has Now Been Mined: Here’s Why It Matters

With fewer than 2 million Bitcoin left to be mined, the cryptocurrency is entering a new era — one that many analysts say marks the beginning of Bitcoin’s “real story.”

Bitcoin’s circulating supply has officially passed 95% of its hard-coded 21 million cap, a milestone embedded nearly 17 years ago when Satoshi Nakamoto mined the genesis block on Jan. 3, 2009. With 19.95 million BTC now in circulation, only 2.05 million BTC remain to be mined.

This raises the key question: What does this mean for Bitcoin’s future, scarcity narrative, and long-term price dynamics?

Annual Inflation Continues Falling as Supply Tightens

According to Bitcoin Visuals, Bitcoin’s annualized inflation rate will continue to decline as newly issued supply shrinks.

Source: Bitcoin Visuals

Thomas Perfumo, a global economist at crypto exchange Kraken, said the milestone strengthens Bitcoin’s credibility as a form of hard money in a world of expanding fiat supply.

“Bitcoin uniquely combines its functionality as a global, real-time and permissionless settlement protocol with the certainty of authenticity and scarcity you’d expect from a masterpiece like the Mona Lisa.”

“This milestone is a reminder of Bitcoin’s resistance against debasement and intervention, operating as designed nearly 17 years later.”

Why 95% Mined Won’t Automatically Send Prices Higher

Many assume that fewer coins entering the market should push prices up. But analysts argue the milestone is not an immediate price catalyst.

Jake Kennis, a senior research analyst at Nansen, said the event is primarily narrative-driven, not a short-term price mover.

Additionally, around 17% of all Bitcoin is held by companies and countries, tightening available supply even further.

Source: Bitbo

“The remaining 5% will take well over 100 years to reach 100% circulation due to halving events. While scarcity can support prices psychologically, this milestone is more of a narrative event than a direct catalyst,” Kennis explained.

He added that the real significance is that Bitcoin’s supply schedule is functioning exactly as designed — predictable, scarce, and resistant to monetary manipulation.

Based on the halving schedule, the final Bitcoin is expected to be mined around the year 2140.

A Sign of Bitcoin’s Maturity, Not a Market Shock

Marcin Kazmierczak, co-founder of RedStone, echoed that the milestone won’t immediately move markets.

Because Bitcoin’s issuance curve has been known for over a decade, the market has been pricing it in continuously.

“The real inflection points were earlier in the supply curve. This milestone represents Bitcoin’s maturity — we’re moving from a growth-phase asset to one with predictable long-term scarcity.”

He noted that the more important factors for future price behavior include:

• macroeconomic trends

• regulatory developments

• institutional adoption

• infrastructure capacity

Rather than crossing an arbitrary percentage threshold.

Miners Face Increasing Pressure as Rewards Shrink

While the 95% milestone may not spark a price rally, analysts warn it could intensify challenges for miners.

Since the April 2024 halving, block rewards dropped to 3.125 BTC, tightening miner revenue.

Kennis noted:

“Miners are already feeling the impact of reduced block rewards, forcing them to rely increasingly on transaction fees. This transition may push out less efficient miners.”

Kazmierczak added that Bitcoin is shifting toward a fee-driven mining model, which will reshape the mining landscape:

“We’re transitioning from block reward-dependent miners to transaction-fee-dependent miners. This creates pressure on miners to consolidate or seek efficiency gains.”

Summary

The milestone of 95% of Bitcoin being mined is symbolically powerful, marking Bitcoin’s maturity and reinforcing its scarcity narrative. But analysts agree:

• It won’t immediately move prices

• It does validate Bitcoin’s digital-gold narrative

• It marks a transition period for miners

• And it signals Bitcoin entering a stage of predictable, long-term scarcity

See all our insights: Bitcoin World news