Definition ∞ Bitcoin supply pressure refers to the forces that influence the availability of Bitcoin on exchanges and in the broader market. This concept accounts for both the rate at which new Bitcoin enters circulation through mining and the willingness of existing holders to sell their assets. High supply pressure often correlates with increased selling activity, potentially leading to price depreciation, while reduced supply can support upward price movements.
Context ∞ The current debate regarding Bitcoin supply pressure frequently involves the impact of halving events, which periodically reduce the issuance rate of new Bitcoin. Observers are also monitoring large institutional holders’ disposition of assets, as their actions significantly affect available supply dynamics.