Bitcoin
Bitcoin ETFs Outpace Miners: A Supply Crunch in the Making?

As of March 24, 2025, the Bitcoin market is witnessing a striking imbalance that’s turning heads and raising eyebrows. This week, U.S. spot Bitcoin exchange-traded funds (ETFs) snapped up a hefty 8,775 BTC, while miners managed to produce just 3,150 BTC. That’s nearly three times more Bitcoin absorbed by ETFs than minted by the network—a disparity that’s fueling speculation about a looming supply shock and what it could mean for Bitcoin’s future.
The ETF Feeding Frenzy
Bitcoin ETFs have become a juggernaut in the crypto space since their approval by U.S. regulators in early 2024. These funds allow investors to gain exposure to Bitcoin’s price movements without the hassle of managing wallets or private keys, making them a hit with both institutional and retail players. This week’s haul of 8,775 BTC underscores their growing appetite. To put it in perspective, that’s enough Bitcoin to fill a digital vault worth over $700 million at current prices (assuming a rough average of $85,000 per BTC as of late March 2025).
The heavy buying isn’t new. Posts on X and recent reports show ETFs have been outpacing miner output for months, with weeks like this one amplifying the trend. BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin Bitcoin Fund (FBTC), and other spot ETFs are leading the charge, pulling in billions in assets as investors bet big on Bitcoin’s long-term value. This week alone, their purchases dwarfed the fresh supply, highlighting a demand that’s relentless—and growing.
Miners Left in the Dust
Meanwhile, Bitcoin miners—the backbone of the network—are churning out coins at a much slower pace. This week’s output of 3,150 BTC aligns with the network’s design: roughly 450 BTC are mined daily, or 3,150 weekly, following the April 2024 halving that slashed block rewards from 6.25 BTC to 3.125 BTC per block. This halving, a programmed event that occurs every four years, ensures Bitcoin’s supply remains scarce, capping out at 21 million coins by 2140.
But here’s the kicker: miners can’t keep up with ETF demand. Producing 3,150 BTC took a full week of computational effort across the globe, yet ETFs scooped up almost triple that amount in the same timeframe. That’s about 20 days’ worth of new Bitcoin supply gobbled up in just five trading days. Miners, facing rising energy costs and tighter profit margins post-halving, simply can’t scale production to match this hunger. The result? A supply-demand mismatch that’s starting to feel seismic.
What This Means for Bitcoin
This isn’t a one-off. Data from earlier months—like December 2024, when ETFs bought 51,500 BTC against 13,850 mined—shows a pattern: institutional demand via ETFs is consistently outstripping Bitcoin’s issuance. With only about 1.9 million BTC left to mine over the next century, and daily issuance now at a trickle, every big ETF buy chips away at the available float.
Analysts are buzzing about a potential “supply shock.” When demand so vastly exceeds new supply, prices often climb as buyers compete for fewer coins. Bitcoin’s price has hovered around $84,000-$85,000 this week, per market data, but some see this ETF frenzy as a catalyst for a breakout. Posts on X echo the sentiment: “The market knows it,” one user wrote, pointing to the intensifying imbalance. Others predict a squeeze that could echo past halving-driven rallies, like the surge from $73,800 to $108,000 in late 2024.
Yet, it’s not all bullish fanfare. Some warn that ETF inflows could taper if market sentiment shifts—say, if regulatory hurdles or macroeconomic factors dampen enthusiasm. Bitcoin’s price has been relatively flat this week, up just 0.9% according to Cointelegraph, suggesting the market hasn’t fully priced in this disparity yet. Still, the numbers don’t lie: 8,775 BTC in ETF hands versus 3,150 BTC from miners is a stark signal of where the momentum lies.
The Bigger Picture
This ETF-miner gap ties into Bitcoin’s core narrative: scarcity. With a fixed supply and halvings cutting issuance, Bitcoin was built to become harder to acquire over time. ETFs are accelerating that reality, acting like vacuum cleaners on the open market. Miners, once the primary source of new BTC, are now a smaller piece of the puzzle as institutional players flex their financial muscle.
For everyday investors, this could mean higher prices ahead—but also higher stakes. If ETFs keep devouring supply, the days of “cheap” Bitcoin might be numbered. For now, the market watches, waits, and wonders: how long can this imbalance hold before something gives?
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CoinReporter.io and EUReporter.co does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Bitcoin
Panama City Council Pioneers Crypto Payments for Public Services in Historic Vote

On April 15, 2025, Panama City made history as its city council voted to become the first government institution in the country to accept payments in Bitcoin (BTC) and other cryptocurrencies for public services. The decision, announced by Mayor Mayer Mizrachi, allows residents to pay taxes, fees, permits, and fines using Bitcoin, Ethereum (ETH), USD Coin (USDC), and Tether (USDT), marking a significant step toward integrating digital currencies into municipal governance. This move positions Panama City as a regional leader in crypto adoption, reflecting a growing global trend of municipalities embracing blockchain technology.
The initiative bypasses previous legislative hurdles by partnering with a local bank to convert cryptocurrency payments into U.S. dollars on the spot, ensuring compliance with Panama’s legal requirement for public institutions to receive funds in USD. “Legally public institutions must receive funds in $, so we partner with a bank who will take care of the transaction receiving in crypto and convert on spot to $,” Mizrachi stated on X. He added that this model “allows for the free flow of crypto in the entire economy and entire government,” offering a practical solution without the need for new legislation—a challenge that had stalled prior efforts under previous administrations.
Panama City’s approach contrasts with El Salvador’s 2021 decision to make Bitcoin legal tender, which mandated its use and faced challenges due to price volatility. Instead, Panama’s model is optional, focusing on compatibility with existing financial systems while encouraging crypto adoption. The city joins a growing list of jurisdictions exploring crypto payments, such as Colorado in the U.S., which began accepting crypto for taxes in 2022, and Lugano, Switzerland, where Bitcoin payments for public services were approved in 2023. However, Panama’s national stance on crypto remains cautious—President Laurentino Cortizo vetoed a 2022 bill to regulate Bitcoin, citing financial regulation concerns, indicating that broader adoption may face challenges.
The decision comes amid a global surge in corporate and institutional interest in Bitcoin, with companies purchasing a record 95,431 BTC in Q1 2025, as reported by Bitwise. Panama’s move could further stimulate its local crypto economy, allowing residents to use digital assets for everyday transactions with the government without requiring institutions to directly manage them. The city has not yet disclosed which payment providers or wallets will be supported, but local authorities promised further guidance before the program’s full rollout later this year.
While this step is a milestone for crypto adoption in Latin America, its impact may be limited by the immediate conversion to USD, which some argue restricts true integration of digital currencies into the economy. For Panama to fully embrace crypto, structural changes might be needed to allow digital assets to circulate more freely without constant liquidation. Nonetheless, Panama City’s initiative could serve as a model for other municipalities, potentially pressuring national policymakers to revisit crypto legislation. As the world watches, this pioneering vote may inspire a broader shift in how governments interact with digital finance.
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