Bitcoin Supply Squeeze Intensifies as Institutions and Governments Accumulate

By: ethnews|2025/05/10 00:00:14

BlackRock’s Bitcoin ETF absorbs $69M daily, now holds 572K BTC amid 18-day institutional buying streak.Bitcoin nears $104K as exchange reserves drop 30%, tightening supply amid government and corporate accumulation.Samson Mow, a prominent Bitcoin advocate and CEO of JAN3, recently cautioned investors about dwindling opportunities to acquire Bitcoin. His comments follow increased institutional purchases and new government policies targeting Bitcoin reserves.Mow emphasized Bitcoin’s fixed supply of 21 million coins, contrasting it with global fiat currencies totaling hundreds of trillions. “Do the math” he urged in a May 8 post, as Bitcoin surged past $103,000. Hours later, he noted it was “too late to buy Bitcoin under $0.1 million” reflecting rapid price shifts.There are hundreds of trillions of dollars out there. There are only 21 million #Bitcoin. Do the math.— Samson Mow (@Excellion) May 8, 2025The U.S. federal government has begun consolidating Bitcoin holdings through a Strategic Bitcoin Reserve (SBR). Initiated by an executive order from President Donald Trump, the SBR starts with 200,000 BTC seized from criminal operations. Arizona and New Hampshire have enacted similar state-level reserves, signaling bipartisan interest in Bitcoin as a strategic asset.BlackRock’s iShares Bitcoin Trust (IBIT) further illustrates institutional demand. The ETF reported 18 consecutive days of inflows, absorbing $69 million on May 9 alone. IBIT now holds approximately 572,000 BTC, worth $69 billion, underscoring Wall Street’s growing stake in Bitcoin.Bitcoin’s price reached $103,170 this week, nearing $104,000 for the first time since January. ETHNews analysts attribute this climb to shrinking exchange inventories and sustained ETF inflows. Data shows available Bitcoin on exchanges has dropped 30% since 2023, intensifying scarcity concerns.Mow’s warnings align with these trendsAs governments and corporations accumulate Bitcoin, retail investors face steeper entry barriers. The SBR initiative, while small relative to total supply, sets a precedent for state-level Bitcoin strategies.While Mow’s statements highlight Bitcoin’s scarcity, critics note that liquidity remains sufficient for current trading volumes. However, prolonged institutional buying could strain availability, particularly during price rallies.The post Bitcoin Supply Squeeze Intensifies as Institutions and Governments Accumulate appeared first on ETHNews.

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