The demand for Bitcoin from institutions is growing exponentially. However, the supply to meet this demand is becoming increasingly limited. In a conversation with BeInCrypto, Christophe Diserens, Chief Wealth Officer at SwissBorg Exchange, stated that large Bitcoin holders like Strategy (formerly MicroStrategy) or Marathon Holdings may need to step up to provide liquidity. The Scarcity Paradox: Demand vs Supply The core appeal of Bitcoin has always been its scarcity, determined by its self-limiting supply. However, as it becomes more popular among retailers and institutional investors, a question arises as to whether there is enough Bitcoin in the market to meet the growing demand. Due to limited supply, it is expected that more and more companies will follow the lead of early adopters, and the available Bitcoin on exchanges may soon seem insufficient. This potential supply crunch could have significant implications for institutions that have yet to enter the market. Competing for Liquidity After the launch of Bitcoin ETFs (ETFs) in 2024, institutional investment in Bitcoin has grown. These funds fundamentally change market dynamics, providing financial advisors with a simple way to tap into the wealth of retail investors. This shift creates a unique 'banana zone,' a cryptocurrency term referring to a parabolic market driven by institutional demand and retail fear of missing out (FOMO). This data point indicates that the vast majority of funds flowing into these new, regulated products come from individual investors. As institutional funds flow in, it competes with other institutions and emotion-driven retail audiences. The result could be a self-reinforcing price rise cycle, where limited supply meets a massive surge in institutional and retail demand. This imminent tightening may create opportunities for entities with large Bitcoin reserves to become liquidity providers. Will MicroStrategy shift from 'HODL' to 'dealer'? In the potential context of a Bitcoin supply shortage, a key question arises regarding the role of institutional holders like Strategy, known globally for its aggressive accumulation strategy. While Strategy co-founder Michael Saylor envisions the company as a long-term holder, a strategic shift to become a dealer or liquidity provider for other institutions is not entirely out of the question. If Strategy were to take such a step, it would need to meet all relevant compliance requirements and operational processes. Given the company's size and resources, these obligations are unlikely to pose significant challenges. If it passes on this opportunity, other entities could also take on the role of dealers. Institutional Miners: The New Market Makers? Beyond Strategy, the search for large-scale Bitcoin liquidity providers has also expanded to the foundation of the network: institutional miners. These companies, with their massive mining capabilities and substantial BTC reserves, have a unique advantage in meeting the growing demand. This phenomenon highlights a broader trend where Bitcoin's original infrastructure may evolve into key financial intermediaries. While the potential supply gap may force the Bitcoin ecosystem to reshape itself, the prospect of major companies purchasing from a handful of suppliers inevitably raises concerns about centralization. The Decentralization Dilemma Bitcoin's decentralization is built on two pillars: the distribution of ownership and the dispersion of mining capacity. If investors have to buy Bitcoin directly from Strategy or Marathon Digital instead of on public exchanges, it could severely impact public perception. The underlying technology of Bitcoin is designed for distribution. However, the concentration of ownership and mining capacity could paint a different picture. As Bitcoin continues to gain popularity, the broader community will need to confront these considerations as soon as possible.