The Diminishing Availability of Bitcoin (BTC) Could Trigger the Next Price Spike

Bitcoin's supply is tightening due to increased institutional demand, according to Sygnum Bank's June 2025 Monthly Investment Outlook. Over the past 18 months, Bitcoin exchange balances have dropped by 30% due to increased holdings by ETFs and other acquisition vehicles.

This trend is seen as a bullish signal indicating a shift towards long-term holding behavior. With more institutional products entering the market, some governments considering adding Bitcoin to their reserves, and three US states passing bills supporting the inclusion of Bitcoin in government reserves, Sygnum sees potential for increased demand and volatility.

Internationally, Pakistan's government and the Reform UK party have announced plans to explore central bank Bitcoin reserves, while similar proposals have been floated in China. These factors could drive broader institutional interest, accelerating Bitcoin's mainstream adoption.