Bitcoin’s circulating supply is tightening swiftly, raising the prospect of price increases as demand surges, according to the June 2025 Monthly Investment Outlook from Sygnum Bank. The report reveals that Bitcoin’s liquid supply has declined by 30% over the last 18 months, mainly due to institutional adoption and new Bitcoin acquisition vehicles like exchange-traded funds (ETFs). This trend is generally viewed as a bullish sign, as more Bitcoin is withdrawn from exchanges. Sygnum stated, “Bitcoin’s fast-shrinking liquid supply is creating the conditions for demand shocks and upside volatility.” Since late 2023, about 1 million BTC has exited exchanges, and the pace is picking up as funds seek to acquire Bitcoin through equity or debt issuance, absorbing more of the available supply. At the same time, uncertainties in global financial systems, especially concerning the weakening US dollar and escalating US debt, have pushed investors toward cryptocurrencies.
Recently, three US states have passed legislation allowing for Bitcoin reserves. New Hampshire has already enacted the law, with Texas expected to follow soon. International interest is also on the rise, with Pakistan announcing intentions to explore Bitcoin reserve options, along with the UK’s Reform party, indicating future potential moves that could catalyze price increases. While official purchases of Bitcoin reserves are yet to commence, Sygnum believes their initiation could significantly drive demand and influence prices.
Institutional buying isn’t the only phenomenon shaping the market. Recent dynamics have reinforced Bitcoin’s image as a safe-haven asset, especially following sell-offs in US Treasuries, which has increased demand for both Bitcoin and gold. Sygnum noted that Bitcoin’s volatility is improving; since June 2022, upside volatility has consistently surpassed downside volatility, a sign of maturing market conditions.
Furthermore, Ether has seen renewed interest following the recent Pectra upgrade, which has led to increased revenue and participation from major financial institutions looking to build on Ethereum and its layer-2 networks.
Recently, three US states have passed legislation allowing for Bitcoin reserves. New Hampshire has already enacted the law, with Texas expected to follow soon. International interest is also on the rise, with Pakistan announcing intentions to explore Bitcoin reserve options, along with the UK’s Reform party, indicating future potential moves that could catalyze price increases. While official purchases of Bitcoin reserves are yet to commence, Sygnum believes their initiation could significantly drive demand and influence prices.
Institutional buying isn’t the only phenomenon shaping the market. Recent dynamics have reinforced Bitcoin’s image as a safe-haven asset, especially following sell-offs in US Treasuries, which has increased demand for both Bitcoin and gold. Sygnum noted that Bitcoin’s volatility is improving; since June 2022, upside volatility has consistently surpassed downside volatility, a sign of maturing market conditions.
Furthermore, Ether has seen renewed interest following the recent Pectra upgrade, which has led to increased revenue and participation from major financial institutions looking to build on Ethereum and its layer-2 networks.
