On May 13, 2025, Coinbase, the third-largest cryptocurrency exchange, experienced its highest daily Bitcoin (BTC) outflow of the year. According to Bitwise head of European research André Dragosch, 9,739 BTC, valued at over $1 billion, were withdrawn from the exchange. This outflow signals growing institutional investment in Bitcoin.
The outflow occurred as Bitcoin traded above $103,600, following the White House's announcement of a 90-day reduction in tariffs between the U.S. and China. This suspension of tariffs eased market concerns and boosted investor sentiment. Nansen's principal research analyst, Aurelie Barthere, noted that this could help Bitcoin, altcoins, and the stock market rally.
Growing institutional demand may lead to a diminishing Bitcoin supply on exchanges, potentially triggering a price rally. Corporations have already bought four times more Bitcoin than all U.S. spot Bitcoin ETFs combined in 2025. Bitcoin's illiquid supply reached a record 14 million BTC, according to Glassnode data reported on May 13, indicating continued accumulation by large investors.
Despite potential short-term corrections due to overheated investor sentiment, Dragosch remains bullish for the rest of 2025. He noted that corporate Bitcoin purchases are approaching 200,000 BTC, which is the annual supply of new Bitcoin.
This article is based on our author's analysis of materials taken from Cointelegraph.