Bitcoin News Today: France's Bitcoin Reserve Ignites Digital Gold Rush, Supply Constraints Fuel Price Surge

Bitcoin Faces Supply Constraints as Institutional Demand Intensifies

France's Union of the Right for the Republic (UDR) party has introduced a landmark legislative proposal to establish a national Bitcoin (BTC) reserve, aiming to hold 2% of the total supply—approximately 420,000 BTC—within 7–8 years, according to a Bitcoinist report. The initiative, led by UDR head Eric Ciotti, seeks to diversify France's foreign exchange reserves and bolster financial sovereignty through "digital gold." The reserve would be funded via public Bitcoin mining using surplus nuclear and hydroelectric energy, alongside tax payments in BTC and seized assets from legal proceedings, the Bitcoinist report adds. While analysts doubt the bill's immediate passage due to UDR's limited parliamentary influence, the proposal underscores growing institutional interest in Bitcoin as a strategic asset.

Corporate treasuries are also accelerating Bitcoin adoption. ZOOZ Strategy Ltd., the first dual-listed Nasdaq-TASE firm, recently acquired $10 million worth of Bitcoin, increasing its holdings to 1,036 BTC valued at $115 million, according to a Bitget article. CEO Jordan Fried emphasized Bitcoin's role as a "resilient store of value," despite concerns over the firm's liquidity metrics. This move aligns with broader trends, as companies increasingly allocate capital to Bitcoin to hedge against inflation and diversify reserves.

The institutional appetite for Bitcoin is tightening its supply dynamics. With 420,000 BTC—roughly 2% of the total supply—potentially locked into sovereign and corporate reserves, market liquidity faces downward pressure. This scarcity narrative is amplified by declining exchange balances and rising on-chain activity, signaling investor accumulation, according to a Brave New Coin analysis. Analysts at Brave New Coin note that Bitcoin's price has surged 6.7% in a week, outpacing gold's 6.86% decline, as capital rotates toward higher-risk assets.

Price projections from industry leaders further fuel bullish sentiment. Robert Kiyosaki and Michael Saylor predict Bitcoin could reach $200,000 by year-end, TradingView notes. Technical analysts highlight key resistance levels: a breakout above $120,000 could trigger a rally toward $143,000, while maintaining support at $112,000 remains critical, in a Bitget analysis. The Federal Reserve's upcoming rate decision adds volatility, with a 98.3% probability of a rate cut likely to boost risk-on sentiment and Bitcoin's appeal as an inflation hedge, TradingView notes.

Institutional demand is also driving structural changes. BlackRock's Bitcoin ETF and Fidelity's entry into the space have injected $30.2 billion in annual inflows, despite recent volatility, according to recent market commentary. Meanwhile, regulatory developments—such as Solana's ETF approval and Visa's stablecoin expansion—signal growing acceptance of crypto in mainstream finance, the Bitget analysis highlights.

Bitcoin currently trades near $115,565, with bulls eyeing a $120,000 target as the Fed's policy meeting approaches, Brave New Coin observed. While short-term volatility remains, the confluence of institutional adoption, supply constraints, and macroeconomic tailwinds positions Bitcoin for a potential breakout in Q4 2025, a Coindesk analysis suggests.