Crypto Journalist

Amin Ayan

Crypto Journalist

Amin Ayan

About Author

Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has…

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Last updated: 

June 3, 2025

The available Bitcoin supply has fallen sharply, setting the stage for potential price surges as institutional demand builds, according to Sygnum Bank’s latest Monthly Investment Outlook for June 2025.

Over the past 18 months, liquid Bitcoin supply has dropped by 30%, driven by rising institutional adoption and an increase in acquisition vehicles such as exchange-traded funds (ETFs), the report stated.

In total, one million BTC have moved off exchanges during this period — typically a bullish signal, as coins are often withdrawn for long-term holding.

“Bitcoin’s fast-shrinking liquid supply is creating the conditions for demand shocks and upside volatility,” Sygnum wrote.

Institutional Demand Surges as ETFs Funnel Capital Into Bitcoin, Diminishing Supply

Institutional demand is a key driver behind this trend. An expanding number of ETFs and corporate vehicles are funneling new capital into BTC.

These structures allow equity and fixed-income investors, many of whom could not directly hold crypto in the past, to gain exposure to Bitcoin.

At the same time, geopolitical and macroeconomic uncertainty is pushing more capital toward hard assets like Bitcoin.

Fiscal instability in the US, a weakening dollar, and the selloff in Treasurys have all contributed to an increasingly favorable backdrop for crypto markets, the report noted.

The emergence of Bitcoin reserves at the state and national level may provide another catalyst. Three US states have already passed Bitcoin reserve legislation, with New Hampshire signing its bill into law. Texas is also likely to follow, Sygnum said.

International interest is building as well. The Pakistani government and Reform UK, currently leading in the UK election polls, have both expressed interest in Bitcoin reserves.

While no official BTC purchases have been made yet, such moves could spark significant price momentum once implemented, both by creating fresh demand and signaling institutional endorsement.

Meanwhile, Bitcoin’s volatility profile is also evolving. According to Sygnum, upside volatility has consistently outpaced downside volatility over the past three years, a shift that reflects maturing market dynamics and deeper liquidity.

Looking at the broader crypto sector, sentiment has improved sharply. The report pointed to a “strong Bitcoin demand trend” and rising onchain activity — particularly following Ethereum’s recent Pectra upgrade — as further signs of growing market strength.

Coinbase CEO warns Bitcoin Could Replace USD

Coinbase CEO Brian Armstrong has warned that Bitcoin could eventually replace the USD as the world’s reserve currency if lawmakers fail to address America’s spiraling debt.

“I love Bitcoin, but a strong America is also super important for the world,” Armstrong posted on X Tuesday. “We need to get our finances under control.”

The U.S. national debt recently crossed $37 trillion, adding fresh urgency to concerns about long-term fiscal stability.

Crypto Journalist

Amin Ayan

Crypto Journalist

Amin Ayan

About Author

Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has…

Share

Last updated: 

May 27, 2025

Strategy, the Bitcoin-focused firm formerly known as MicroStrategy, appears to be easing its pace of Bitcoin acquisitions, according to a new report from K33 Research.

The company, led by co-founder Michael Saylor, remains the largest publicly traded holder of Bitcoin, but its recent purchase cadence has cooled compared to the frenzied buying seen last November.

In its latest filing, Strategy revealed it bought 4,020 BTC between May 19 and May 25 for $427.1 million, using proceeds from its ongoing $21 billion at-the-market (ATM) offering.

However, capital raised from the program has slowed. Only $348.7 million was deployed during that week—down from $705.7 million the week prior and $1.31 billion in early May.

K33: MSTR Premium Shrinks as Bitcoin Treasury Race Heats Up

K33 Head of Research Vetle Lunde attributes the deceleration to two key factors: a declining premium for MSTR shares relative to the firm’s Bitcoin holdings, and intensifying competition among corporations entering the Bitcoin treasury space.

“The pace of ATM utilization is notably slower than the first round,” Lunde noted.

Between early November and mid-December, Strategy raised an average of $2.13 billion weekly. In contrast, recent averages have dropped to $788 million.

MSTR shares, once trading at a hefty premium to the company’s net Bitcoin asset value, have seen that margin shrink.

Last week, the premium fell from 185% to 163%, marking lows not seen since early April.

According to Lunde, such compression pressures Strategy to dial back aggressive ATM offerings, lest dilution undermine investor confidence.

Meanwhile, more than 70 companies have now adopted Bitcoin treasury strategies, with firms like Twenty One, Nakamoto, Metaplanet, and Trump Media joining the ranks.

Trump Media alone launched its treasury push with a $2.5 billion private placement backed by roughly 50 institutions.

As the field widens, Lunde suggests traders are spreading bets beyond MSTR, diminishing some of its dominance in equity-based Bitcoin exposure.

Despite this, Strategy’s stash now totals 580,250 BTC, valued at $63.3 billion—accounting for over 2.75% of Bitcoin’s capped 21 million supply.

With BTC trading near record highs, demand for Bitcoin treasury firms remains strong. Still, Lunde cautions that most new entrants are niche players, unlikely to disrupt bitcoin’s broader momentum.

“Signs of euphoria are still subdued in spot and derivatives markets,” he said. “Aside from MSTR, most treasury stocks reflect limited segments of the BTC ecosystem.”

Strategy Could Become Top Publicly Traded Company in World

Meanwhile, Jeff Walton, an analyst at Strategy, has said the firm may one day rise to become the top publicly traded company in the world.

Walton believes the company’s unprecedented exposure to Bitcoin, which recently crossed $111,000, gives it a unique edge.

“Strategy holds more of the best asset and most pristine collateral on the planet than any other company, by multiples,” he said.

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Bitcoin is holding firm around the $104,000 mark after a sharp rally driven by days of sustained buying pressure and renewed market optimism. Bulls regained control when BTC reclaimed the $90,000 level in late April, reversing months of aggressive selling that had weighed on price action. The shift in sentiment has been clear, with bullish momentum building quickly and pushing the market back into key supply zones.

Supporting this trend, on-chain data from CryptoQuant reveals that over 110,000 BTC have been withdrawn from exchanges in the past month. Historically, large outflows from centralized platforms signal growing investor confidence and reduced sell-side liquidity—two key components of strong upward trends. This behavior often precedes major rallies, as long-term holders tighten supply while sidelining coins from near-term trading.

Now, with Bitcoin trading just below all-time highs, the market appears to be entering a new phase. Investors are watching closely as BTC consolidates above $100K, with analysts suggesting that the current structure sets the stage for another leg higher. If exchange withdrawals continue and sentiment stays bullish, a break toward the $109K all-time high could come sooner than expected.

Bitcoin Faces Final Resistance Before Price Discovery

Bitcoin is now preparing to test uncharted territory after enduring months of heavy selling pressure and persistent market skepticism. Following a strong recovery since late April, BTC is currently finding resistance around the $105,000 level — a critical price point that could define the next phase of the cycle. This area, just shy of the all-time high, is likely to attract both profit-taking and speculative interest, which may result in increased volatility before a decisive breakout.

If bulls manage to push above the $105K mark, a surge toward new all-time highs would be imminent. However, this level also represents a psychological barrier that could trigger a short-term rejection. Despite this, the underlying data supports a strong bullish outlook.

Top analyst Ali Martinez shared recent on-chain data from CryptoQuant showing that over 110,000 BTC have been withdrawn from centralized exchanges over the past month. Such a large volume of withdrawals historically correlates with accumulation by long-term holders, signaling confidence and reduced selling pressure.

This behavior suggests that the recent rally is not just fueled by speculative hype but also supported by structural shifts in supply. As BTC supply tightens and demand increases, particularly with institutional flows rising, the setup for a sustained breakout strengthens. While some short-term resistance may persist, the broader trend now favors the bulls. If exchange outflows continue at this pace and macro sentiment remains stable, Bitcoin could soon enter a price discovery phase, leaving behind the range that defined its movement for much of 2025.

BTC Price Action Details: Technical Levels

Bitcoin is trading around the $104,000 mark after a powerful breakout rally that started in late April. As shown in the daily chart, BTC surged through the $90K resistance and cleared $100K with strong momentum, but is now facing resistance near $104K–$105K, a zone that previously acted as a major supply region during the February highs.

The chart reveals that BTC is consolidating just below this resistance with a small retrace and declining volume, suggesting a cooling of momentum after several days of aggressive buying. This isn’t necessarily bearish — short pauses are common before retesting key levels, especially when RSI and volume stretch. The 200-day moving average (SMA) and exponential moving average (EMA) remain well below the current price, showing that bulls maintain structural control.

The key levels to watch now are $103,600 (short-term support) and $104,900–$105,500 (resistance zone). A clean break above this range would open the path toward new all-time highs. Conversely, a failure to break higher may lead to a retest of the breakout zone near $100K. Overall, price action remains bullish, but the next few candles will be decisive for short-term trend continuation.

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