Bitcoin News Today: Institutional Bitcoin Demand Surpasses New Mining Supply by 5.6x in 2025

Bitcoin’s institutional demand has surged past new supply, marking a significant turning point in the cryptocurrency’s market dynamics. In 2025, institutions have already accumulated 545,579 BTC, far outpacing the 97,082 BTC mined during the same period [4]. This sharp imbalance signals growing institutional confidence in Bitcoin as a strategic asset and underscores the tightening supply landscape. With Bitcoin’s total supply capped at 21 million coins, the dwindling availability of newly mined coins makes the competition for existing holdings increasingly intense.

The rapid absorption of Bitcoin by institutional investors is locking up liquidity, reducing the amount of BTC available for retail trading and exchange-based price discovery. This trend mirrors historical patterns where periods of strong institutional accumulation have often preceded significant price rallies [4]. As institutions continue to build long-term positions, the market is shifting toward a model where Bitcoin is treated more like a traditional store of value rather than a speculative asset.

Bitcoin’s price has responded to these developments, climbing above $116,000 in early August 2025 after a brief pullback below $112,000. This upward movement was supported by fresh inflows into spot Bitcoin ETFs, with BlackRock’s IBIT ETF attracting $91.5 million in a single day [3]. The ETF now holds 1.27 million BTC, accounting for approximately 6% of the total circulating supply [3]. This growing institutional footprint is reshaping Bitcoin’s role in global finance, reinforcing its position as a core component of diversified investment portfolios.

The supply-demand imbalance is expected to have lasting effects on Bitcoin’s price behavior. According to economic principles, when demand exceeds supply, upward price pressure is inevitable. In Bitcoin’s case, this dynamic is amplified by its fixed supply model, which ensures long-term scarcity [4]. As the available supply becomes increasingly concentrated among institutional holders, the remaining liquidity in the market is set to shrink, potentially increasing volatility and price sensitivity to macroeconomic signals.

Looking ahead, the next critical threshold for Bitcoin is $116,900. A sustained close above this level could trigger further buying momentum and push the price toward $120,000. However, if Bitcoin fails to hold above this level, it may face another test of the $112,000 support zone. On-chain activity also indicates movement of 517 BTC from Bhutan-linked wallets, raising the possibility of short-term selling pressure if those coins reach exchanges [3]. Meanwhile, Bitcoin whales have locked in profits, realizing over $44 million in the past two days, suggesting some level of caution among long-term holders [3].

The continued outpacing of new supply by institutional demand reflects a structural shift in Bitcoin’s market behavior. As more capital flows into Bitcoin through regulated vehicles like ETFs, the asset’s integration into traditional financial systems is accelerating. This trend reinforces the long-term bullish narrative for Bitcoin, driven by its unique scarcity properties and growing institutional adoption [4].

Source:

[1] https://www.tradingview.com/news/financemagnates:56edec20c094b:0-why-crypto-is-going-up-bitcoin-ethereum-xrp-and-dogecoin-prices-today-lead-broad-rally/

[2] https://www.ainvest.com/news/bitcoin-news-today-bitcoin-surges-116-000-driven-institutional-etf-inflows-2508/

[3] https://coindoo.com/market/bitcoin-surges-past-116000-with-fresh-institutional-buying/

[4] https://phemex.com/news/article/institutional-bitcoin-purchases-outpace-mining-in-2025_14574