According to Sygnum Bank's June 2025 Monthly Investment Outlook, Bitcoin's liquid supply has decreased by 30% over the past 18 months. This tightening supply, driven by institutional adoption and Bitcoin acquisition vehicles, sets the stage for potential price surges. The report highlights the impact of these factors on the cryptocurrency market.
Since late 2023, Bitcoin balances on exchanges have fallen by approximately 1 million BTC. This trend is accelerating as more funds issue equity or debt to purchase Bitcoin, further reducing available supply. Geopolitical and fiscal uncertainties, such as the weakening US dollar and rising US debt, are also driving investors to crypto markets.
Three US states have recently passed legislation permitting Bitcoin reserves, with New Hampshire already enacting such a bill. International interest is also growing, with Pakistan's government and Reform UK expressing intentions to explore Bitcoin reserve strategies. Sygnum suggests that official Bitcoin reserve purchases could be a major catalyst for upward price movement.
Bitcoin's image as a safe-haven asset is being reinforced by recent market dynamics. The report noted that upside volatility has outpaced downside volatility over the past three years, indicating market maturation. Ether (ETH) is also regaining momentum due to the recent Pectra upgrade, driving revenue growth and institutional interest.