Bitcoin Scarcity May Spark Explosive Surge, Bank Study Shows

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Bitcoin’s available coins for trading have dropped sharply. That change could push prices higher if demand holds up.

According to Sygnum Bank’s June 2025 Monthly Investment Outlook, the liquid supply of Bitcoin fell by about 30% over the last 18 months. In that time, nearly 1 million BTC left exchanges. That means fewer coins are ready to move at a moment’s notice.

Liquid Supply Tightens

Based on reports from Sygnum Bank, exchange balances dropped by around 1 million BTC since late 2023. That amount equals roughly 5% of Bitcoin’s total supply.

When coins leave exchanges, they often go into cold storage or long-term funds. Some of these funds include new exchange-traded funds and corporate buyers issuing equity or debt to buy Bitcoin.

If coins are locked away, traders have to compete for a smaller pool of available coins. That gap between supply and demand can cause bigger price swings on the upside.

Institutions And State Moves

Three US states have now passed laws to hold Bitcoin as part of their reserves. New Hampshire already signed its bill into law. Texas is expected to follow soon. A third state is also moving forward, though details are still pending.

In addition, governments abroad are paying attention. Pakistan’s government has said it will look into Bitcoin reserves. In the UK, the Reform Party—currently leading in election polls—plans to study something similar.

When a state or country actually buys Bitcoin for its coffers, it can spark more buying. That act has a double effect: it creates immediate demand and it signals that public institutions see Bitcoin as a store of value.

Safe-Haven Status Strengthens

Rising uncertainty over the US dollar and US debt worries have driven some investors toward Bitcoin. In May, as US Treasury prices slid on concerns about rising debt levels, digital gold and physical gold saw higher interest.

BTCUSD trading at $104,653 on the 24-hour chart: TradingView.com

Bitcoin is being viewed more like a hedge against dollar weakness. On days when Treasuries wobble, some cash moves into crypto markets. Larger swings on the upside than on the downside also hint that institutions may be soaking up dips more quickly.

Sygnum’s data shows that since June 2022, Bitcoin’s upward moves have been larger than its downward moves. That may be a sign that big players have become more confident in holding through small sell-offs.

Ethereum’s Comeback

Ethereum is also stirring after a period of sluggish performance. The recent Pectra upgrade on Ethereum has spurred more fees and drawing fresh interest. Several big banks and financial firms are now exploring tokenization platforms built on Ethereum and its layer-2 networks.

When more institutions issue tokenized assets, the whole crypto space could benefit. Renewed activity on Ethereum often spills back into Bitcoin. That could add to overall demand for top coins.

Featured image from Imagen, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that’s not just a metaphor, it’s a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian’s journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling – right up his alley!

So, he landed a killer gig at NewsBTC, where he’s one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian’s all work and no play? Not a chance! When he’s not at his computer, you’ll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian’s got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here’s the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day – and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors – and bosses – he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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