Bitcoin's Supply Squeeze: Institutions and Whales Drive Price Surge

Bitcoin's supply squeeze is intensifying, with institutional demand surging and whales moving massive amounts of the cryptocurrency. This trend is leading to a significant decrease in the already low available supply of Bitcoin.

MicroStrategy, under the leadership of Bitcoin enthusiast Michael Saylor, has been aggressively acquiring Bitcoin. On February 10, the company purchased 7,633 BTC, worth around $742 million. This acquisition adds to MicroStrategy's substantial Bitcoin stash, making it one of the largest, if not the largest, corporate holders of Bitcoin worldwide.

It's not just MicroStrategy piling on Bitcoin. A venture capital firm, Metaplanet, has just raised ¥4 billion (roughly $30 million) to boost its own Bitcoin reserve. Institutions like these are starting to pay attention, and with an overall supply of Bitcoin that is fixed and decreasing, the Bitcoin price is pumping.

As Bitcoin ETFs have intensified their buying, the mismatch between demand and supply has become stark. In 2025, the ETFs acquired a stunning 55,896 BTC, while only 16,200 BTC was mined during that same timeframe. This stark contrast showcases the institutional interest in Bitcoin and attempts to highlight the trend of that interest graphically.

Bitcoin's supply keeps getting pressurized. The Coinbase Premium Index, our nearest proxy for institutional demand, has flipped positive in the past week. When the Premium Index is positive, it means institutions are buying up Bitcoin and are willing to pay a premium for it. This has historically been quite a reliable leading indicator for Bitcoin price action.

Besides institutional buying, another force at work pushing the supply of Bitcoin in the opposite direction is whale activity. Over the last week, for example, whales—those large Bitcoin investors—have moved more than 60,000 BTC. When such influential players shift or reallocate their holdings, it's indicative not just of potential imminent price moves (in either direction) but also of further reducing the amount of Bitcoin that retail and institutional investors can get their hands on.

With the tightening supply of Bitcoin, we might expect the price to climb. Some analysts even think we could see a really big surge hit us soon. The big number to look at is $101,000.