Over $1 Billion in Bitcoin Pulled from Coinbase as Institutions Ramp Up Buying
Record-Breaking BTC Outflows Point to Growing Corporate Demand and Looming Supply Crunch
In what may signal a decisive shift in the market, Coinbase recorded the largest daily Bitcoin outflow of 2025 on May 9, with 9,739 BTC worth more than $1 billion leaving the exchange. The move is being interpreted as a bold accumulation effort by institutional investors and corporations, with analysts warning of a possible Bitcoin supply shock on the horizon.
Institutional Appetite Surges as Geopolitical Tensions Ease
The $1 billion exodus coincided with Bitcoin prices trading just above $103,600, amid growing optimism across global markets. A White House announcement on May 7 detailing a 90-day suspension of reciprocal tariffs with China helped calm geopolitical nerves, improving the risk appetite among investors.
“Institutional appetite for Bitcoin is accelerating,” said André Dragosch, Head of European Research at Bitwise, in a May 13 post on X. Dragosch linked the surge in withdrawals directly to growing institutional demand.
Corporate Buying Outpaces ETFs by a Factor of Four
Speaking during the Chain Reaction daily show on May 12, Dragosch revealed that in 2025 alone, corporations have bought nearly 200,000 BTC—four times more than the combined purchases of all U.S. spot Bitcoin ETFs.
“We’re close to the annual supply of new Bitcoin,” Dragosch said. “Which is crazy.”
This pace of acquisition puts significant pressure on available exchange supply, which, if sustained, could ignite a supply shock—a scenario where demand far outpaces circulating Bitcoin, triggering upward price pressure.
14 Million Bitcoin Now Considered ‘Illiquid’
Further fueling this thesis, data from Glassnode shows that Bitcoin’s illiquid supply has hit 14 million BTC, its highest level on record. Illiquid supply refers to coins held in wallets with little or no history of selling, suggesting that long-term holders and institutions are locking up assets for the long haul.
“The supply shock is real,” noted Aurelie Barthere, principal research analyst at Nansen. “Bitcoin isn’t just getting bought—it’s disappearing from circulation.”
While Dragosch remains “very bullish” for the rest of 2025, he cautioned that short-term corrections could still occur due to overheated sentiment in the crypto market.
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