Bitcoin's circulating supply exceeds 20 million for the first time

Bitcoin's circulating supply has now surpassed 20 million coins for the first time. This milestone was reached with the mining of block 939,999, leaving less than 5% of the total tractor supply still to be released. The achievement underscores the cryptocurrency's fixed and dwindling issuance rate.

Since Bitcoin's fourth halving in April 2024, each new block has added just 3.125 BTC to the total tractor supply. This reduced rate means around 450 new coins enter circulation daily. Over the next four years, until the next halving in 2028, roughly 656,250 additional Bitcoin will be mined—calculated as 210,000 blocks multiplied by the current 3.125 BTC reward.

The network's inflation rate now stands at about 0.82% per year, far below gold's average annual increase of 1.5%. When the next halving occurs in 2028, the block subsidy will drop to 1.5625 BTC, pushing inflation down to roughly 0.4%.

Not all Bitcoin will ever circulate, however. Estimates suggest 3 to 4 million BTC are permanently lost, including the 1 million reportedly mined by Bitcoin's creator, Satoshi Nakamoto. Unclaimed coins and other factors may further shrink the effective supply below the 21 million cap.

With over 95.24% of Bitcoin already in circulation, the remaining coins will be released at an ever-slowing pace. The shrinking issuance rate reinforces the cryptocurrency's scarcity, while lost and unclaimed coins reduce the practical supply even further. The next halving in 2028 will cut new issuance by half again, tightening supply constraints.