Bitcoin Supply Shrinks by 30% in 18 Months: Sygnum Bank Predicts Major Price Surge
Bitcoin's circulating supply has decreased by 30% over the past 18 months, according to Sygnum Bank. This significant reduction, driven by long-term holders and institutional accumulation, is setting the stage for a potential price breakout. Sygnum's research indicates that even modest institutional inflows can have a substantial impact on Bitcoin's price, due to its limited liquid supply.
The bank's analysis suggests that every $1 billion in net inflows into spot Bitcoin exchange-traded funds (ETFs) can drive a 3–6% price increase. With growing interest from sovereign wealth funds, pension funds, and endowments, Sygnum anticipates that 2025 could mark a significant acceleration in institutional participation in crypto assets.
Sygnum also highlights the potential for Bitcoin to be recognized as a central bank reserve asset, which could catalyze unprecedented demand. The combination of decreasing supply and increasing institutional demand positions Bitcoin for a potentially strong performance in the coming year.
As of now, Bitcoin is trading at approximately $105,910.
