Shrinking BTC Supply Signals Possible Price Spike
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Government interest in Bitcoin reserves may be a new demand catalyst.
As Bitcoin hovers near its May high, new data suggest that there has been a tightening the leading crypto asset’s supply amid surging institutional demand.
Sygnum Bank’s June 2025 Monthly Investment Outlook attributes the asset’s positive momentum to its growing appeal as a safe haven and broader institutional adoption, which are now driving a structural reduction in liquid supply.
Bitcoin Demand Shocks
Over the past 18 months, Bitcoin exchange balances have fallen by one million BTC, which represents a 30% drop, largely due to increased holdings by ETFs and other acquisition vehicles. These instruments are funneling capital from traditional equity and fixed income investors into the crypto space.
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