Bitcoin is showing signs of deflation as the total supply excluding holdings by institutional players like Strategy₿ continues to decrease. According to Ki Young Ju, CEO and Co-founder of CryptoQuant, Bitcoin’s deflationary trend is becoming more prominent due to Strategy₿’s significant holding of over 555,000 BTC which is being kept off the market with no intention of selling.

The current buying pace of BTC by institutional investors such as MSTR outpaces the rate at which new Bitcoin is mined. This has led to an annual deflation rate of approximately -2.23%. In addition, other major institutional holders are likely contributing to this growing deflationary pressure.

With a shrinking supply of Bitcoin and increasing demand from institutional investors, this deflationary trend could have a significant impact on the cryptocurrency market. These developments are seen as bullish for Bitcoin in the long run.