Market

Bitcoin’s Institutional Demand Surges, $105K On The Horizon?

Institutional interest in Bitcoin (BTC) is showing no signs of slowing down. On May 9th, Coinbase recorded its highest single-day Bitcoin outflow of the year.

Coinbase Records Over 9,700 BTC Withdrawn In One Day

According to André Dragosch, Head of European Research at Bitwise, Coinbase saw 9,739 BTC withdrawn on May 9th, equivalent to more than $1 billion at the time, as Bitcoin traded above the $103,600 mark.

On May 13th, Dragosch posted the following on his X (formerly Twitter) account:

“Institutional appetite for Bitcoin is accelerating with little to no signs of slowing down any time soon.”

This massive BTC movement represents the largest net Bitcoin outflow from Coinbase in 2025, underlining a shift in Bitcoin’s user base from retail investors to more long-term, institutional holders.

 

Macroeconomic Moves Fuel Market Confidence

The surge in Bitcoin withdrawals closely followed a major geopolitical development: the White House’s announcement of a 90-day reduction in reciprocal tariffs between the U.S. and China.

 

Bitcoin - Dragosch

Source: Glassnode

 

The move, outlined in a joint statement from both nations after a meeting in Geneva, was aimed at easing tensions and stimulating cross-border economic collaboration.

This de-escalation of trade hostilities had a ripple effect across financial markets, including crypto. With reduced fears of an economic downturn, investors turned to risk-on assets, and Bitcoin was a clear beneficiary.

Aurelie Barthere, Principal Research Analyst at Nansen, made the following statement:

“The 90-day suspension of additional tariffs eliminates the immediate risk of a sudden re-escalation. This improved risk appetite is likely to benefit Bitcoin, altcoins, and even the broader equities market.”

Corporate Buying May Trigger A Bitcoin Supply Shock

In any case, the scale of corporate Bitcoin accumulation this year is certainly turning plenty of heads.

Dragosch highlighted during the Chain Reaction daily X show on May 12th that corporations have purchased nearly four times more BTC than the total acquired by all U.S. spot Bitcoin ETFs combined in 2025.

He remarked:

“We’re close to 200,000 BTC in corporate purchases which is about the entire annual supply of new Bitcoin.”

This trend could pave the way for a classic supply shock, where surging demand meets a shrinking available supply on exchanges. As fewer coins are left for sale, upward pressure on price becomes inevitable.

Furthermore, while market volatility and short-term pullbacks are expected, Dragosch remains firmly bullish on Bitcoin’s long-term outlook for 2025 and beyond.

 

Illiquid Bitcoin Supply Hits New Record

Further confirming the institutional accumulation narrative, Glassnode reported that Bitcoin’s “illiquid supply”, which refers to coins held in wallets with little to no history of selling, has reached an all-time high of 14 million BTC.

 

Bitcoin Glassnode

Source: Glassnode

 

This rising illiquid supply suggests that more Bitcoin is being transferred to cold storage and long-term holding wallets, aligning with the behavior typically seen in institutional and high-net-worth investors.

As reported by various sources on May 13th, this metric reinforces the view that the current market trend is driven by accumulation rather than short-term speculation.

 

What This Means For Investors

With institutional participation ramping up, corporate treasuries getting involved, and macroeconomic conditions turning favorable, the Bitcoin market may be entering a new bullish phase.

While price volatility is likely to persist, the fundamentals, strong demand, limited supply, and improving investor sentiment, provide a solid foundation for potential upward movement.

Retail investors looking to follow the trend may consider dollar-cost averaging (DCA) strategies and keeping an eye on wallet outflows from major exchanges as a signal of long-term bullish sentiment.

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Haider Jamal

Content Strategist

Haider is a fintech enthusiast and Content Strategist at CryptoWeekly with over four years in the Crypto & Blockchain industry. He began his writing journey with a blog after graduating from Monash University Malaysia. Passionate about storytelling and content creation, he blends creativity with insight. Haider is driven to grow professionally while always seeking the next big idea.

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