Coinbase logged its largest daily Bitcoin withdrawal of 2025 on May 9, as 9,739 BTC—worth more than $1 billion—left the exchange in a single session.
The move, highlighted by Bitwise head of European research André Dragosch, reflects accelerating demand from corporates and hedge funds seeking direct coin exposure.
“Institutional appetite for bitcoin is accelerating,” Dragosch wrote on X.
Macro Backdrop Boosts Risk Appetite
The exodus occurred days after Washington and Beijing agreed to a 90-day tariff pause, easing geopolitical tension and lifting sentiment across risk markets.
Analysts at Nansen said the suspension reduces the threat of a “sudden re-escalation,” potentially supporting rallies in Bitcoin, altcoins, and equities.
Corporate Treasury Buying Outpaces ETFs
“In 2025 alone, corporations have bought four times more Bitcoin than all US spot Bitcoin ETFs combined, which is crazy,” Dragosch elaborated during a Chain Reaction appearance on May 12.
“We’re close to 200,000 Bitcoin already, which is the annual supply of new Bitcoin.”
Mechanics of a Supply Shock
Large withdrawals shrink exchange reserves, limiting the coins available to satisfy fresh demand.
When buyers outnumber sellers and float is thin, upward price pressure can intensify quickly—a dynamic traders label a “supply shock.”
Historical data show pronounced exchange outflows often foreshadow strong bullish extensions, although timing such moves remains difficult.
Short-Term Corrections Still Possible
Despite his long-term optimism, Dragosch cautioned that overheated sentiment could trigger interim pullbacks.
Momentum indicators on both daily and weekly charts hover near extreme levels, leaving the door open for profit-taking.
Illiquid Supply Hits All-Time High
Coinbase’s outflow coincides with a broader trend: Glassnode’s metric for illiquid BTC just notched a record 14 million coins, indicating whales continue to transfer holdings to cold storage.
Supply available for trading is shrinking even before the next block-subsidy halving cuts miner issuance again in 2028.
Institutional On-Ramp Strategy
Observers note that large players often accumulate through over-the-counter desks or direct exchange withdrawals to avoid slippage.
Coinbase, with its established custody arm and regulatory footprint, remains a favored ramp for U.S. corporates.
What Comes Next
Should institutional inflows persist at current clips, analysts foresee mounting pressure on spot markets, especially during periods of thin order-book depth.
However, macro shocks—ranging from regulatory action to sudden liquidity events—could still derail near-term bullish setups.
For now, the balance of evidence suggests the smartest money is moving coins off public venues, wagering that scarcity will drive value higher through the rest of 2025.