Bitcoin News Today: Institutional Appetite for Bitcoin Outpaces Creation, Sparking Supply Concerns

Businesses and institutional investors are absorbing Bitcoin at a rate nearly four times faster than the supply being created by miners, according to data from River, a Bitcoin financial services firm. Publicly traded Bitcoin treasury companies, private businesses, and exchange-traded funds (ETFs) collectively purchased approximately 1,755 BTC per day on average in 2025. This demand is compounded by an additional 1,430 BTC per day absorbed by ETFs and investment vehicles, while governments added about 39 BTC per day to their holdings [1]. In contrast, Bitcoin miners are producing roughly 450 new BTC per day, raising concerns about a potential supply shock if institutional adoption continues to outpace the production rate [1].

The rapid accumulation of Bitcoin by corporate entities has drawn attention to the growing influence of institutional investors in shaping the cryptocurrency’s market dynamics. Bitcoin treasury companies acquired a total of 159,107 BTC in the second quarter of 2025, bringing the total held by businesses to approximately 1.3 million BTC. Among these, Michael Saylor’s Strategy is the largest known holder, with over 632,457 BTC in its corporate reserve. According to BitcoinTreasuries, this accumulation has led some analysts to describe Strategy’s buying as a “synthetic halving” due to the speed and volume of its purchases [1].

Despite this aggressive buying, Strategy’s corporate treasury officer, Shirish Jajodia, has noted that the firm’s purchasing strategy does not significantly impact short-term Bitcoin prices. The company spreads its acquisitions through over-the-counter (OTC) transactions conducted off exchanges, avoiding direct influence on spot markets or price volatility. Jajodia highlighted that Bitcoin’s daily trading volume exceeds $50 billion, which means even large purchases over a few days would not substantially shift market dynamics [1].

The broader market is also experiencing a shrinking supply of Bitcoin available for trading. According to data from CryptoQuant, Bitcoin exchange reserves—coins held on trading platforms—have fallen to multi-year lows. This trend indicates that investors and institutions are increasingly transferring their holdings to cold storage rather than keeping them readily available for immediate sale. A declining exchange reserve suggests a tightening of the circulating supply, which could exert upward pressure on prices over the long term if demand continues to outstrip supply [1].

The implications of this supply-demand imbalance remain a subject of speculation among analysts. Some believe that the shrinking exchange reserves and institutional accumulation could act as a bullish catalyst for Bitcoin’s price, particularly if adoption continues to accelerate and liquidity constraints begin to manifest. However, short-term volatility remains a risk, especially as market conditions shift or macroeconomic pressures intensify. The recent pullback in Bitcoin’s price, which has broken below key support levels, underscores the potential for near-term corrections even as long-term fundamentals appear to strengthen [1].

Source: [1] Businesses are absorbing Bitcoin 4x faster than it is mined (https://cointelegraph.com/news/businesses-absorbing-btc-4x-faster-mined)