Bitcoin’s total supply reached 21 million coins on Monday, marking a milestone in the cryptocurrency’s history. With only one million coins remaining to be mined, the event underscores the asset’s increasingly limited supply and potential implications for its future value.
The final coins will be released over a period extending into the 22nd century, according to the cryptocurrency’s programmed protocol. This diminishing supply is a key characteristic differentiating Bitcoin from traditional fiat currencies, which can be increased by central banks.
Thomas Perfumo, Global Economist at Kraken, has observed a correlation between Bitcoin’s performance and other asset classes, including gold and the S&P 500. He noted that all three have reached record levels, suggesting a broader investor trend toward diversification and safe-haven assets amid economic uncertainty. “The trend of Bitcoin seems to move in sync with other significant assets,” Perfumo stated in a recent analysis. Since the beginning of the year, gold has even outperformed Bitcoin, while the S&P 500 index is too at its all-time highs.
The recent rally in Bitcoin has coincided with expectations of interest rate cuts by the Federal Reserve. Markets are anticipating at least two consecutive reductions in the near future, despite persistent inflation. This potential shift in U.S. Monetary policy is seen as a contributing factor to the increased risk appetite among investors, driving demand for assets like Bitcoin.
Adding to this dynamic is the decline of the U.S. Dollar, which has lost approximately 10% of its value since the start of the year. This depreciation has fueled a “debasement trade,” where investors seek alternative stores of value, such as Bitcoin, to protect against currency devaluation.
Perfumo’s analysis, following Bitcoin reaching new all-time highs in October 2025, highlighted the interplay of macroeconomic factors, central bank policy expectations, and psychological dynamics influencing price narratives. He has also suggested that as Bitcoin adoption grows, its volatility will likely decrease, evolving into a more stable safe-haven asset. But, he has also noted that Bitcoin doesn’t currently trade like gold or tech stocks.
Prior to joining Kraken in 2017, Perfumo worked as a Long/Short Equity Analyst at Moore Capital Management, focusing on financial modeling and valuation. His expertise in financial markets and investment strategy informs his current role at the digital asset exchange.
