Bitcoin News Today: Institutional Appetite and Strategic Reserves Fuel Bitcoin's Record Surge

Bitcoin's price surged to new all-time highs in July 2025, driven by a confluence of institutional demand, exchange liquidity constraints, and strategic reserve initiatives. The cryptocurrency's circulating supply on exchanges has plummeted to 14.5%, the lowest level since 2018, according to Glassnode data. This "supply shock" reflects a shift in investor behavior, with long-term holders and institutional entities transferring Bitcoin to cold storage or self-custody wallets, reducing available liquidity for trading. Over-the-counter (OTC) balances, critical for large-scale trades, have also hit historic lows, with CryptoQuant reporting a 21% decline in miner-linked OTC addresses since January 2025, now holding just 155,472 BTC. Analysts argue that the tightening supply, combined with robust institutional buying, has created a bullish environment where demand outpaces available tokens.

Institutional adoption has accelerated, with spot Bitcoin ETFs recording $4.7 billion in inflows over 15 consecutive days as of June 24, per SoSoValue. These funds, led by BlackRock's IBIT and Fidelity's FBTC, have attracted over 3,300 institutional investors since 2024. The surge in ETF demand has amplified Bitcoin's structural scarcity, as newly acquired coins are often locked in custodial accounts, effectively removing them from circulating supply. Focusw3b founder Lau noted that Bitcoin's resilience above the $100,000 psychological threshold is underpinned by "strong institutional demand" and a "shrinking supply," with ETF inflows serving as a key indicator.

The U.S. government's formal recognition of Bitcoin as a strategic reserve asset in March 2025 further catalyzed market sentiment. Executive orders established a Strategic Bitcoin Reserve, funded by forfeited cryptocurrency, positioning BTC alongside traditional reserves like gold and oil. While critics questioned the lack of direct government purchases, the move signaled institutional legitimacy. By July 2025, 267 public companies had added Bitcoin to their balance sheets, including MicroStrategy, which held 597,000 BTC worth $40 billion. Corporate treasuries and sovereign wealth funds are increasingly treating Bitcoin as a hedge against fiat devaluation, with its 0.65 correlation to inflation outperforming gold in recent months.

Technical indicators reinforce the bullish narrative. Bitcoin's price pushed past $117,000 in October 2025, breaching a key liquidity wall, as ETF inflows hit $429.9 million on September 30. Analysts like Rekt Capital highlighted $126,000 as a pivotal level, with Fibonacci projections suggesting potential targets up to $155,000. The "Uptober" effect-historically bullish October trends-also bolstered sentiment, with October averaging a 29.9% return over the past decade. Glassnode's Short-Term Holder Cost Basis Model indicated the average entry price for recent buyers was $102,900, suggesting room for further gains before reaching "heated" zones at $122,000.

However, risks persist. A drop below $100,000 could trigger $6.42 billion in leveraged long liquidations across exchanges, per CoinGlass. While analysts view this scenario as increasingly unlikely, volatility remains a concern. The Federal Reserve's anticipated rate cuts in 2025 could further fuel demand for risk assets, but macroeconomic uncertainties and regulatory shifts could disrupt the trajectory. Despite these challenges, the institutional and sovereign-driven shift toward Bitcoin as a reserve asset appears irreversible, with market dynamics favoring sustained upward momentum.

Source: [1] Bitcoin Supply Shock? Percentage of BTC on Exchanges Drops to Seven-Year Lows (https://cointelegraph.com/news/less-than-15-bitcoin-left-on-crypto-exchanges-signals-supply-problem) [2] BTC Supply Drops Below 15% on Exchanges (https://www.cointribune.com/en/btc-supply-drops-below-15-on-exchanges/) [3] The Era of Institutional Bitcoin Adoption Has Arrived (https://invezz.com/news/2025/07/11/the-era-of-institutional-bitcoin-adoption-has-arrived-and-this-time-its-different/) [4] Bitcoin Eyes $125K as ETFs Rise, Liquidity Wall Firms (https://cryptonews.com/news/btc-pushes-past-117k-liquidity-wall-after-429m-etf-inflows-bullish-breakout-or-bear-trap/) [5] Bitcoin and Ether Are Primed for New All-Time Highs (https://cointelegraph.com/news/bitcoin-bulls-charge-at-all-time-highs-trader-says-126k-pivotal)