$BTC - Institutional demand for Bitcoin is growing, as Coinbase, the third largest cryptocurrency exchange in the world, recorded its largest daily outflow of Bitcoin in 2025 on May 9.

Coinbase saw 9,739 Bitcoin (BTC) withdrawn from the exchange, worth over USD 1 billion, the largest net outflow recorded in 2025, according to Bitwise's head of European research, André Dragosch.

"Institutional appetite for Bitcoin is accelerating," Dragosch added.

The outflow occurred when Bitcoin was trading above USD 103,600 and just days after the White House announced a 90-day reduction in reciprocal tariffs between the United States and China, easing market concerns and boosting broader investor sentiment.

The 90-day suspension of additional tariffs removes the risk of a "sudden resurgence," which could help Bitcoin, altcoins, and the stock market in general to recover due to improved risk appetite, said Nansen's chief research analyst, Aurelie Barthere, to Cointelegraph.

Corporate investment in Bitcoin could trigger a supply shock

The growing demand from institutional investors and companies could lead to a decrease in the supply of Bitcoin on exchanges, indicating a potential price surge driven by a "supply shock," which occurs when buyer demand meets a decrease in available BTC, leading to price appreciation.

"Just in 2025, corporations have bought four times more Bitcoin than all combined U.S. spot Bitcoin ETFs, which is crazy," he said. "We are already close to 200,000 Bitcoin, which is the annual supply of new Bitcoin."

Despite the bullish backdrop, Dragosch noted that the cryptocurrency market may still see short-term corrections due to what he described as overheated investor sentiment.