Bitcoin’s available coins for trading have dropped sharply. That change could push prices higher if demand holds up.
According to Sygnum Bank’s June 2025 Monthly Investment Outlook, the liquid supply of Bitcoin fell by about 30% over the last 18 months. In that time, nearly 1 million BTC left exchanges, meaning fewer coins are ready to move at a moment’s notice.
Based on reports from Sygnum Bank, exchange balances dropped by around 1 million BTC since late 2023, which equals roughly 5% of Bitcoin’s total supply. When coins leave exchanges, they often go into cold storage or long-term funds, including new exchange-traded funds and corporate buyers issuing equity or debt to buy Bitcoin. If coins are locked away, traders have to compete for a smaller pool of available coins, potentially causing bigger price swings on the upside.
Three US states have now passed laws to hold Bitcoin as part of their reserves. New Hampshire has already signed its bill into law, while Texas is expected to follow soon. A third state is also moving forward, though details are still pending. Additionally, governments abroad are paying attention; Pakistan’s government has indicated it will look into Bitcoin reserves, and the UK’s Reform Party plans to study something similar.
When a state or country actually buys Bitcoin for its coffers, it can spark more buying, creating immediate demand and signaling that public institutions view Bitcoin as a store of value.
Rising uncertainty over the US dollar and US debt worries have driven some investors toward Bitcoin. In May, as US Treasury prices slid due to concerns about rising debt levels, both digital gold and physical gold saw increased interest. Bitcoin is increasingly viewed as a hedge against dollar weakness, with cash moving into crypto markets on days when Treasuries wobble.
Larger swings on the upside than on the downside suggest that institutions may be quickly absorbing dips. Sygnum’s data shows that since June 2022, Bitcoin’s upward moves have been larger than its downward moves, indicating that big players have become more confident in holding through small sell-offs.
Ethereum is also experiencing a resurgence after a period of sluggish performance. The recent Pectra upgrade on Ethereum has spurred more fees and attracted fresh interest. Several major banks and financial firms are now exploring tokenization platforms built on Ethereum and its layer-2 networks.
When more institutions issue tokenized assets, the entire crypto space could benefit. Renewed activity on Ethereum often spills back into Bitcoin, which could increase overall demand for top coins.
