As Bitcoin (BTC) lingers near its May peak, fresh insights indicate a tightening in the premier cryptocurrency’s supply due to a surge in institutional interest. The June 2025 Monthly Investment Outlook from Sygnum Bank links this positive trajectory to the increasing allure of Bitcoin as a risk-free asset and its wider institutional acceptance, both of which are causing a structural decrease in available supply.
Bitcoin’s Demand Shocks
In the past one and a half years, Bitcoin exchange balances have dipped by a million BTC, marking a 30% decline, mainly as a result of heightened holdings by ETFs and other acquisition entities. These tools are channeling funds from conventional equity and fixed income investors into the crypto realm.
The drop in exchange balances is perceived as a bullish indicator, signalling a shift towards long-term holding patterns. As more institutional offerings enter the market and certain governments mull over including Bitcoin in their reserves, Sygnum sees the potential for demand shocks and upward volatility. These elements, according to the bank, pave the way for a potential prolongation of the current bull run.
As institutional acceptance fuels Bitcoin’s upward trajectory, governmental actions hint at a growing role for the asset on both state and national scales.
Global Interest in Bitcoin Reserve Adoption Grows
Three US states have recently endorsed bills supporting Bitcoin’s inclusion in government reserves, with New Hampshire leading the charge by being the first to sign such a bill into law. Texas is expected to follow suit, given the public support from the state’s governor. International interest is also on the rise. The government of Pakistan and the Reform UK party, presently leading in the British election polls, have both revealed plans to explore central bank Bitcoin reserves.
Meanwhile, policy think tanks in China have proposed similar ideas, and unconfirmed news suggests that silent accumulation might already be in progress. While no official Bitcoin purchases have started under these approved schemes, Sygnum analysts speculate that actual acquisitions could serve as a significant price catalyst.
The blend of rising demand and the potent signal of state and national entities entering the market might stimulate extensive institutional interest and hasten Bitcoin’s mainstream adoption.
