Bitcoin Supply Squeeze Drives 19.7% Gain for Strategy Inc.

In July 2025, the net absorption of Bitcoin by smaller investors reached 19,300 BTC, significantly outpacing the 13,400 BTC issued by miners. This supply squeeze has led some market observers to suggest that a breakout in the price of Bitcoin may be imminent, with targets reaching up to $150,000.

According to Glassnode data, in mid-July 2025, the supply flow of Bitcoin shifted notably. Wallets holding less than 100 BTC, often referred to as Shrimps, Crabs, and Fish, absorbed approximately 19,300 BTC over the month. This absorption rate exceeded the number of new coins created through mining, which stood at around 13,400 BTC. The resulting net monthly absorption of roughly 6,000 BTC has tightened the available supply, creating a scenario where smaller investors are buying up more Bitcoin than miners are supplying.

Exchanges also showed lower liquidity, with less Bitcoin available for sale and thinner order books. This situation could lead to more pronounced price reactions if demand rises. On the institutional side, demand remained steady, with spot Bitcoin ETFs in the U.S. seeing strong inflows of $1.17 billion on July 10 and $1.03 billion on July 11. This trend added to the pressure on supply, as ETFs were absorbing new Bitcoin at a pace that exceeded the number of coins being mined. Some investors and analysts viewed this as a sign that a market move might be forming in the Bitcoin market.

Michael Saylor, the executive chairman of Strategy Inc., also spoke about Bitcoin’s outlook in a recent interview. He noted that the current cycle was different from past bull markets and reiterated his belief that the BTC price could eventually reach $1 million. Saylor highlighted that his company had gained a 19.7% return on its Bitcoin holdings since the start of 2025, acquiring 88,062 BTC during that time, bringing its total to 597,325 BTC by mid-year. Based on recent prices, those assets were worth about $10.3 billion. His comments came at a time when others were also discussing possible future price levels, with some suggesting the Bitcoin price could climb to $150,000 if current trends continued. This included both institutional accumulation and a limited supply available on exchanges.

While the price of Bitcoin had performed strongly over the past several months, it had not reached new all-time highs in every currency. In a post shared by a user, it was pointed out that Bitcoin remained below its previous peak in both British pounds and euros. This meant that although global momentum appeared strong, not all regions had experienced a new price of Bitcoin record in their local currency. For some, this kept enthusiasm cautious despite the growing talk of a significant breakout. More importantly, the July data pointed to a tightening market, with smaller holders, combined with institutional demand through ETFs, stocking up more Bitcoin than miners were producing. At the time of writing, the price of Bitcoin was trading at $117,472.72, and the ongoing imbalance between supply and demand continued to fuel speculation.