Coinbase saw outflows of $1 billion in Bitcoin (BTC) in a single day, and analysts warn of supply shock.

Source: Cointelegraph Original: "Coinbase sees a daily outflow of $1 billion in Bitcoin (BTC), analysts warn of supply shock"

Institutional demand for Bitcoin (BTC) is growing, with Coinbase, the world's third-largest cryptocurrency exchange, recording its highest daily outflow of Bitcoin this year.

On May 13, Coinbase withdrew 9,739 Bitcoins worth over $1 billion from the exchange—according to André Dragosch, Head of Research at Bitwise Europe, this is the highest net outflow recorded in 2025.

"Institutional interest in Bitcoin is accelerating," Dragosch added in a post on X on May 13.

The outflow occurred as the price of Bitcoin surpassed $103,600, just a few days after the White House announced a 90-day reciprocal tariff exemption between the United States and China, a move that eased market concerns and boosted broader investor sentiment.

Aurelie Barthere, chief research analyst at Nansen, told Cointelegraph that the 90-day extension of tariffs eliminates the risk of a "sudden re-escalation," which could help Bitcoin, other cryptocurrencies, and the broader stock market rise due to improved risk appetite.

The increasing demand from institutional investors and enterprises may lead to a reduction in the supply of Bitcoin on exchanges, indicating a potential price increase driven by "supply shocks." When buyer demand meets a decrease in available BTC, it will result in price appreciation.

Although Bitcoin may experience short-term pullbacks, Dragosch remains "very bullish" on the remainder of 2025, he told Cointelegraph during the Chain Reaction Daily X show on May 12.

"In just 2025, the amount of Bitcoin purchased by enterprises will be four times the total of all spot Bitcoin ETFs in the United States, which is crazy," he said. "We are already close to 200,000 Bitcoins, which is equivalent to the annual new supply of Bitcoin."

Despite the bullish background, Dragosch pointed out that the cryptocurrency market may still experience a short-term pullback due to what he describes as overheated investor sentiment.

Meanwhile, according to Glassnode data, the "illiquid supply" of Bitcoin has reached a record 14 million BTC, indicating that large investors continue to accumulate.

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