Bitcoin Exchange Supply Drops 2% as Institutions Accumulate

Bitcoin’s on-exchange supply has fallen sharply, with over 403,000 BTC moving off trading platforms since early December. This reduction signals decreased immediate selling pressure as institutions and ETFs continue accumulating. Market watchers see this as a bullish structural shift in Bitcoin’s supply dynamics, even as it sets the stage for potentially sharper price movements.

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Bitcoin Volatility Rises Amid U.S. Deficit Concerns

Bitcoin volatility has increased to 1.17% since the U.S. government shutdown began, while the cryptocurrency continues to lag behind traditional assets like stocks, gold, and silver. Against this backdrop of market uncertainty, the federal deficit has surged to $1.973 trillion—$76 billion higher than the same period last year—raising significant concerns about fiscal sustainability. Analysts suggest crypto markets may remain supported if ETF inflows continue their positive trend, with $2.7 billion flowing into Bitcoin ETFs this week alone.

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Bitcoin Volatility Hits Record Lows as Asset Matures

Bitcoin has entered its longest period of low volatility on record, with 60-day measures staying below 50% since early 2023 through 2025. This sustained compression occurred alongside significant price appreciation and growing market capitalization. The asset’s volatility profile is increasingly resembling traditional risk assets as institutional participation deepens.

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Institutional Investors Now Control 20% of Bitcoin Supply

Institutional investors are increasingly dominating Bitcoin ownership, with recent data showing they control between 17% and 31% of its circulating supply. Entities such as ETFs, public companies, governments, and DeFi protocols collectively hold over 3.642 million BTC, worth approximately $428 billion. ETFs lead with 1.49 million BTC, while public companies like Strategy and Tesla account for 935,498 BTC. Governments, including the U.S. and El Salvador, are also accumulating Bitcoin, further tightening supply. Analysts debate whether this institutional influx will stabilize Bitcoin’s price or undermine its decentralization. At the time of reporting, Bitcoin was trading at $117,460.

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Bhutan Moves $173M in Bitcoin to Binance Amid Crypto Strategy

Bhutan has executed a series of Bitcoin transfers totaling $173 million to Binance over four days, as tracked by Arkham. Despite these moves, the country retains over 11,000 BTC in its Druk Holdings wallet, valued at $1.28 billion, keeping it among the top global holders. Bhutan’s crypto strategy includes mining Bitcoin since at least 2017, leveraging its hydroelectric resources, and plans to expand its treasury with other digital assets like Ethereum. The nation is also developing Gelephu Mindfulness City (GMC), a Special Administration Region aimed at fostering sustainable economic growth through crypto and global investments.

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S&P 500 Lags Behind Bitcoin Despite Record Highs

The S&P 500 Index has rebounded sharply since April, reaching a record high of 6,280.46 with a 7% year-to-date gain. However, when measured in Bitcoin (BTC), the index has fallen 15% in 2025, showcasing BTC’s superior performance. Data from The Kobeissi Letter reveals an even more dramatic trend: since 2012, the S&P 500 has plummeted 99.98% against Bitcoin. This stark contrast underscores Bitcoin’s role as a high-growth asset, outpacing traditional equities even during strong market recoveries. The divergence highlights the shifting dynamics between crypto and traditional markets as investors weigh risk and returns.

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Bitcoin Mining Difficulty Drops 7.5% Amid Heatwaves

Bitcoin mining difficulty has plummeted by 7.5%, marking the steepest drop since China’s 2021 mining ban. The decline follows a sharp reduction in global hashrate, triggered by extreme heatwaves in Texas and power shortages in Iran, forcing miners to shut down operations. While the difficulty adjustment has temporarily boosted hashprice—revenue per computing power—smaller miners face challenges due to rising electricity costs. Meanwhile, the industry is gradually shifting toward renewable energy, with green power usage increasing from 20% in 2011 to 41% today. Countries like Pakistan are also exploring Bitcoin mining to utilize surplus electricity and stabilize their grids, signaling a growing recognition of crypto’s economic potential.

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Metaplanet’s Bitcoin Buy Surges Stock 20%

Metaplanet’s stock surged more than 20% after announcing a 1,112 Bitcoin purchase worth $117 million, bringing its total holdings to 10,000 BTC—overtaking Coinbase. The firm also revealed a $210 million bond issuance to fund further Bitcoin acquisitions. With an average purchase price of $96,400 per BTC, Metaplanet solidifies its position as a major institutional holder of Bitcoin, reflecting growing corporate confidence in the cryptocurrency.

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Bitcoin Indicators Signal Room for Growth Beyond $200K

Bitcoin (BTC) continues to show strength, holding above $110,000 as on-chain indicators suggest the bullish cycle is far from peaking. The 2023 Rainbow Chart projects a potential $200,000 target, while BTC’s RSI (71.5) remains below historical peak levels. The 200-week Moving Average Heatmap and 2-Year MA Multiplier also indicate further growth potential. Data from CryptoQuant reveals long-term holders are accumulating during dips, while retail activity remains subdued, avoiding a FOMO phase. Analysts highlight that BTC’s MVRV and spot retail activity suggest the market hasn’t yet reached its peak.

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Bitcoin Faces Continued Consolidation Amid Market Uncertainty and Selling Pressure

Bitcoin is expected to continue consolidating during its current pullback phase, with analysts cautioning against risky trades until long-term holders resume buying. Currently trading at $87,100, Bitcoin’s supply from long-term holders has decreased significantly since its all-time high of $109,000 in January. The market remains volatile amid macroeconomic uncertainties, and traders are advised to exercise caution.

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Bitcoin MVRV Indicator Suggests Bullish Year Ahead Before Market Peak

Bitcoin’s Market-Value-to-Realized-Value (MVRV) indicates that the cryptocurrency has not yet peaked, with predictions suggesting a peak around 3.2 in 2025. Currently at 1.95, the MVRV suggests room for growth, although some analysts warn of potential further downside before a recovery. Historically, MVRV spikes at market tops, signaling profit-taking among holders.

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Bitcoin Short-Term Holder Activity Signals Bullish Outlook for 2025

Bitcoin short-term holders are increasingly buying during price surges, driven by FOMO, which sets a bullish outlook for 2025, according to analysts. Long-term holders continue to accumulate during dips, reinforcing strong conviction in the market despite occasional sell-offs creating accumulation opportunities. Currently, Bitcoin’s price hovers around $104,390, with 80% of short-term holders back in profit after recent recoveries.

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