Institutions Buy Bitcoin 4x Faster Than Miners, Fueling Supply Crunch

Bitcoin whales have offloaded 147,000 BTC in a single month, sparking speculation about the cryptocurrency’s future price trajectory. According to River Financial’s analysis, institutional and corporate demand for Bitcoin has surged, with businesses purchasing the asset at a rate four times faster than miners can produce new coins. This dynamic has created a supply squeeze, as institutions and treasury firms accumulate Bitcoin at an unprecedented pace. River reports that Bitcoin treasury companies, including entities like Michael Saylor’s Strategy, have bought over 159,107 BTC in Q2 2025 alone, holding more than 18.5% of the circulating supply. The rapid accumulation by institutional players contrasts sharply with the 450 BTC mined daily post-April 2025 halving, highlighting a structural shift in Bitcoin’s market dynamics.

The growing corporate adoption of Bitcoin is reshaping its role in traditional finance. River’s data reveals that 3,000 U.S. businesses now hold Bitcoin in their treasuries, with an average allocation of 22% of net income to BTC. Small- to medium-sized enterprises (SMEs) dominate this trend, using Bitcoin as a hedge against inflation and banking risks. Regulatory clarity, including updated GAAP standards allowing firms to report Bitcoin at fair market value, has further accelerated adoption. Additionally, the U.S. government’s establishment of a Strategic Bitcoin Reserve and state-level initiatives, such as Texas and New Hampshire’s BTC reserve proposals, have reinforced Bitcoin’s legitimacy in corporate circles.

The supply-demand imbalance has fueled bullish price forecasts for 2025. River Financial notes that institutional buyers, including ETFs and funds, are acquiring an average of 1,755 BTC daily, outpacing mining output. This trend has reduced the liquid supply of Bitcoin, potentially driving prices upward as sellers retreat. Analysts at Forbes predict Bitcoin could exceed $150,000 in 2025, citing the pro-crypto policies of the incoming Trump administration, the approval of spot ETFs, and the tokenization of the U.S. dollar. Similarly, a 2025 forecast from InvestingHaven projects a range of $80,440 to $151,200 for Bitcoin, with a stretched target of $185,000. These predictions hinge on sustained institutional demand and regulatory tailwinds.

While the bull case is strong, risks persist. The rapid accumulation by institutions could limit retail access and exacerbate volatility. River’s analysis warns that a supply shock may occur if institutional holders “HODL” their Bitcoin, further tightening liquidity. Additionally, Bitcoin’s price is tied to macroeconomic factors, including interest rates and global geopolitical tensions. For example, geopolitical instability in June 2025 briefly supported Bitcoin’s price, but sustained gains require broader economic stability.

The convergence of corporate adoption, institutional demand, and regulatory developments positions Bitcoin for a potential breakout. With over 1.3 million BTC held by businesses and treasury firms, the asset is increasingly viewed as a strategic reserve. If current trends continue, Bitcoin’s price could test $100,000 in the near term, with $150,000 or higher within reach by year-end. However, market participants must remain cautious, as high leverage and regulatory uncertainties could disrupt the trajectory.

Source: [1] River Financial report (https://www.coinsurges.com/businesses-embrace-bitcoin-amid-2025-bull-market-surge-river/) [2] Forbes crypto predictions (https://www.forbes.com/sites/digital-assets/2024/12/22/5-crypto-predictions-for-2025/) [3] InvestingHaven 2025 forecasts (https://investinghaven.com/crypto-forecasts/15-cryptocurrency-forecasts-2025/) [4] CoinNews institutional buying analysis (https://coinnews.com/news/institutions-are-buying-up-bitcoin-4x-faster-than-miners-are-creating-btc-in-2025-river-research/) [5] River Financial on Bitcoin supply dynamics (https://coinnews.com/news/institutions-are-buying-up-bitcoin-4x-faster-than-miners-are-creating-btc-in-2025-river-research/)