Bitcoin Supply Shock Incoming: Only 146K BTC Left in OTC as Institutions Pile In
The Bitcoin game just changed — hard. According to Sygnum Bank’s June 2025 Investment Outlook, BTC’s liquid supply has dropped 30% in the last 18 months, setting up a massive supply shock that could fuel explosive price action.
1M BTC Gone Off Exchanges = Bullish Signal?
Over 1 million Bitcoin have quietly vanished from exchanges — a classic bullish indicator. Why? When BTC leaves exchanges, it’s usually headed for cold storage or long-term holding. That means less available supply, especially just as institutional demand is heating up.
“Its fast-shrinking liquid supply is creating the conditions for demand shocks and upside volatility.” — Sygnum Bank
Institutions, ETFs & States Are Hoarding BTC
Here’s the real kicker: institutions aren’t just dipping their toes in anymore — they’re diving in. ETFs, trusts, and corporate portfolios are pouring fresh capital into BTC, giving investors a new way to get exposure without holding the actual crypto.
And it’s not just Wall Street.
- Three US states (including New Hampshire) now have reserve laws.
- Texas could be next.
- Even Pakistan and Reform UK (yes, the political party leading UK polls) are eyeing national BTC reserves.
Only ~146K BTC Left in OTC Desks
According to Bitcoin analyst Carl ₿ Menger, OTC desks — where big buyers scoop up BTC without hitting the public market — are nearly tapped out:
“BREAKING: SUPPLY SHOCK IS REAL — only ~146K #Bitcoin left in OTC markets. Major institutional buys will soon hit public exchanges. Buckle UP.” – @CarlBMenger
That’s a big deal. Once OTC liquidity dries up, institutions have to buy from public exchanges, driving up prices in real time.
BTC Volatility Now Tilting Bullish
Interestingly, Sygnum notes that Bitcoin’s upside volatility has now outpaced downside for three years straight. Translation? The dips are shallower, and the pumps are stronger — a sign of market maturity and deeper liquidity.
Meanwhile in Fiat Land…
Coinbase CEO Brian Armstrong dropped a truth bomb this week, warning that Bitcoin could replace the US dollar as global reserve currency if America doesn’t fix its $37 trillion debt problem.
“I love Bitcoin, but a strong America is also super important for the world,” Armstrong said on X. “We need to get our finances under control.”
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