Scarcity absolutely factors into institutional accumulation—but it’s not the whole story. Think about Bitcoin’s hard-coded 21M supply cap or Ethereum’s ongoing deflationary pressure from EIP-1559: these are structural scarcity plays institutions can’t ignore, especially as they look to diversify away from fiat systems vulnerable to debasement. But let’s be clear: it’s not *just* scarcity driving them. Regulatory progress (like ETF approvals), better custody tools, and macro trends (say, shifting interest rate environments) all play into the equation. For sophisticated players, scarcity is a *catalyst*—a reason to dig deeper into fundamentals—not a buy signal on its own. Still, you can’t dismiss it: in a world of infinite liquidity, scarcity gives crypto a unique edge as a store of value long-term.