How does scarcity mindset affect investor behavior and BTC price?

Scarcity mindset is the belief that an asset is limited and valuable, which often drives investors to act quickly out of fear of missing out. Bitcoin’s fixed supply of 21 million coins fuels this mindset. When investors realize that a finite amount of BTC will ever exist—and that many coins are lost or held long-term—it increases demand. This psychological effect causes more people to buy and hold, which reduces circulating supply and pushes up the btc price. Scarcity is a powerful motivator in both bull and bear markets. In bull runs, it contributes to rapid price growth. In bear markets, it reassures holders that BTC remains fundamentally valuable. This mindset is why many treat Bitcoin as “digital gold.” You can observe how scarcity sentiment is influencing market movements right now by checking the live btc price and trading trends on Toobit.