Institutional Demand Surges as Corporations Accumulate BTC Faster Than ETFs
Coinbase, the world’s third-largest crypto exchange, recorded its largest single-day Bitcoin outflow of 2025 on May 9, signaling a dramatic uptick in institutional and corporate demand for Bitcoin.
According to André Dragosch, head of European research at Bitwise, a total of 9,739 BTC — worth over $1 billion — exited Coinbase in a 24-hour span, marking the exchange’s highest net BTC withdrawal so far this year.
“Institutional appetite for Bitcoin is accelerating,” Dragosch posted on X on May 13.
💥BOOM: Biggest bitcoin exchange outflow from Coinbase in 2025 just happened!
9,739 BTC just left Coinbase – highest net outflow year-to-date.
Institutional appetite for bitcoin is accelerating. 🔥 pic.twitter.com/oaptcbJkDs
— André Dragosch, PhD⚡ (@Andre_Dragosch) May 13, 2025
The exodus occurred as Bitcoin traded above $103,600, buoyed by improved market sentiment following the White House’s announcement of a 90-day suspension on U.S.–China reciprocal tariffs.
Tariff Truce Boosts Risk Appetite, Fuels Crypto Rally
The temporary easing of trade tensions is expected to reduce the likelihood of a “sudden re-escalation,” which could help fuel a wider rally across Bitcoin, altcoins, and equities, according to Nansen’s principal research analyst Aurelie Barthere.
“The 90-day tariff suspension removes short-term geopolitical uncertainty,” Barthere told Cointelegraph.
“This may set the stage for renewed capital flows into risk assets.”
Corporate Buying Accelerates — Supply Shock on the Horizon?
Dragosch warned that the growing wave of corporate accumulation could push Bitcoin into a supply shock, a scenario where rising demand collides with shrinking exchange supply, often resulting in rapid price increases.
“In 2025 alone, corporations have bought four times more Bitcoin than all U.S. spot ETFs combined,” Dragosch said during the Chain Reaction daily show on May 12.
“We’re already near 200,000 BTC, which is equivalent to the entire annual supply of new Bitcoin.”
Although Dragosch remains “very bullish” for the remainder of the year, he acknowledged the possibility of short-term corrections, citing overheated investor sentiment as a potential cause for temporary pullbacks.
On-Chain Data Confirms Strong Accumulation
Supporting this thesis, Glassnode data shows that Bitcoin’s illiquid supply — coins held in wallets with little to no history of selling — has reached a record high of 14 million BTC.
This suggests that long-term holders and institutions continue to accumulate and remove BTC from active circulation, reinforcing the narrative that supply-side pressures could drive further price appreciation.
Final Thoughts: A Bullish Setup With Institutional Momentum
With institutional inflows rising, corporations aggressively stockpiling Bitcoin, and geopolitical risks temporarily defused, analysts believe that the current market structure may be setting up for a historic rally.
If the current pace of off-exchange accumulation continues — and demand from ETFs, family offices, and corporations holds — a Bitcoin supply squeeze could push prices well beyond previous all-time highs in the second half of 2025.
