Bitcoin Supply Squeeze Intensifies: Institutional Demand Surges as Whales Move Massive Amounts

The principal shift we are seeing in the Bitcoin market today is that demand is outpacing supply. Not just any demand—interest from Wall Street. Institutional investors have been dipping their toes into Bitcoin for the past year, and in 2021, it feels like they are taking the plunge. Large purchases from high-net-worth individuals and organizations are also squeezing Bitcoin supply on the market. While “whale” activity—large-scale trading—has always been part of the Bitcoin market, it’s now more pronounced, and with it, our old friend the Bitcoin supply squeeze. Institutional Purchases and Whale Activity Fueling Supply Crunch In the last few days, the buying of big amounts of Bitcoin has sensationally decreased its already low available supply. MicroStrategy, under the Bitcoin-believing leadership of Michael Saylor, is plowing ahead with its aggressive Bitcoin grab. On February 10, the company purchased a stunning 7,633 BTC, worth around $742 million. This acquisition adds to MicroStrategy’s already significant Bitcoin stash, making it one of the largest, if not the largest, corporate holders of Bitcoin worldwide. The $BTC supply squeeze is getting real! • Saylor isn’t stopping—MicroStrategy just stacked 7,633 BTC ($742M). • Metaplanet has joined the game—raising ¥4B to load up on Bitcoin. • Demand is crushing supply—ETFs have grabbed 55,896 BTC in 2025, while only 16,200 BTC were… — Kyledoops (@kyledoops) February 11, 2025 But it’s not just MicroStrategy piling on Bitcoin. A venture capital firm, Metaplanet, has just raised ¥4 billion (roughly $30 million) to boost its own Bitcoin reserve. Institutions of this sort are starting to pay attention. Metaplanet and its ilk are not your average retail investors. As this kind of outfit starts to hedge with Bitcoin, and with an overall supply of Bitcoin that is fixed and, in fact, decreasing, that Bitcoin price is pumping should come as no surprise. As Bitcoin ETFs have intensified their buying, the mismatch between demand and supply has become stark. In 2025, the ETFs acquired a stunning 55,896 BTC. However, only a mere 16,200 BTC was mined during that same timeframe. This stark contrast showcases the institutional interest in Bitcoin and attempts to highlight the trend of that interest graphically. Bitcoin ETFs have been a significant tool to try to display that interest in the open market. They have been buying an enormous amount of Bitcoin and, in contrast, there has been minimal mining. Whale Activity and Rising Premiums Point to Higher Demand Bitcoin’s supply keeps getting pressurized. The Coinbase Premium Index, our nearest proxy for institutional demand, has flipped positive in the past week. When the Premium Index is positive, it means institutions are buying up Bitcoin and are willing to pay a premium for it. This has historically been quite a reliable leading indicator for Bitcoin price action. So is this a good sign for the price of Bitcoin? Cointelegraph asked Sam Bankman-Fried, the founder and CEO of Alameda Research and FTX, a cryptocurrency exchange. Besides institutional buying, another force at work pushing the supply of Bitcoin in the opposite direction is whale activity. Over the last week, for example, whales—those large Bitcoin investors—have moved more than 60,000 BTC. When such influential players shift or reallocate their holdings, it’s indicative not just of potential imminent price moves (in either direction) but also of further reducing the amount of Bitcoin that retail and institutional investors can get their hands on. With the tightening supply of Bitcoin, we might expect the price to climb. Some analysts even think we could see a really big surge hit us soon. The big number to look at is $101,000. If we go through that, there are over $3 billion worth of short positions that could get liquidated, with the potential of triggering a massive rally. And if the bottom side of that scenario were to play out, it would get us buying in a cascade as we force ourselves to close our short positions. Once $BTC clears $101K, over $3 billion in shorts are getting wiped out. The clock is ticking… Which side are you on? pic.twitter.com/BblYtfnZH4 — Kyledoops (@kyledoops) February 11, 2025 ETF Outflows and Inflows: Mixed Signals Even with the rising demand and a constricting supply, Bitcoin ETFs have undergone some changes in recent days. On February 10, Bitcoin spot ETFs saw a net outflow of $186 million; this might seem like a setback, but it’s crucial to note that BlackRock’s Bitcoin ETF, IBIT, saw a single-day net inflow of $55.36 million. So, while it appears as though the Bitcoin spot ETF is being drained, in reality, the very opposite is occurring with one of its closest affiliates. Without making any claims regarding why that is, it’s very interesting to note the considerable interest in Bitcoin at the institutional level, especially among the likes of BlackRock. The demand for Bitcoin appears to be gaining even more momentum. We see this coming not just from the buying activity of high-net-worth individuals and family offices (which, by the way, seems to be on the upswing), but also from both institutional and retail ETF investors. This suggests to us that the Bitcoin market is becoming more and more, for lack of a better term, “adult.” Looking Ahead: What’s Next for Bitcoin? In the next few weeks, Bitcoin’s price movement could be affected critically. Demand from institutions that want to hold Bitcoin keeps rising, but the supply seems stuck. If institutional demand were to move the price above $101,000, I think that would make it clear—especially to retail investors—that a price breakout has occurred. Since the situation has become so volatile, I think it prudent for all Bitcoin investors to closely watch the forgoing factors. Vigilandtenders, you’ll want to keep an eye on the trajectory of Bitcoin over the next month or so. In total, the Bitcoin supply squeeze is getting seriously real. When we look at all the huge players that are accumulating, we are left with a market that could really surprise us at any moment with some huge price movements. Sure, there might be some moments in the next few months where it looks like we are facing a return to the kind of volatility that took us down to $40,000 back in June. But, in general, and as a whole, it seems to me that the Bitcoin accumulation and now supply squeeze story is an exciting one. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. 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