$1B Bitcoin exits Coinbase in a day as analysts warn of supply shock

Institutional investment in Bitcoin is surging, as evidenced by record-breaking outflows from Coinbase. On May 9th, 2025, Coinbase witnessed its highest daily Bitcoin outflow of the year—a staggering 9,739 BTC, exceeding $1 billion. This significant movement, highlighted by Bitwise’s André Dragosch, underscores the accelerating institutional appetite for Bitcoin.

This surge in institutional demand coincides with positive global economic news. The White House’s announcement of a 90-day reduction in US-China tariffs eased market anxieties, boosting overall investor confidence. This improved risk appetite, according to Nansen’s Aurelie Barthere, is likely contributing to a rally in Bitcoin, altcoins, and the broader stock market. The tariff suspension mitigates the risk of sudden escalation, creating a more stable investment environment.

The growing corporate interest in Bitcoin could trigger a “supply shock.” Increased demand from institutional investors and corporations is reducing the available supply of Bitcoin on exchanges, potentially driving up prices. While short-term corrections are possible, the overall outlook remains bullish, particularly given the significant corporate purchases. In 2025 alone, corporate Bitcoin acquisitions have quadrupled those of all US spot Bitcoin ETFs. This massive influx, approaching 200,000 BTC—nearly the annual supply of newly mined Bitcoin—further fuels the bullish sentiment.

Despite the positive trend, Dragosch cautions about the potential for short-term market corrections due to overheated investor sentiment. However, the record-high “illiquid supply” of Bitcoin, exceeding 14 million BTC according to Glassnode data, indicates continued accumulation by large investors, reinforcing the long-term bullish outlook. This accumulation of Bitcoin by major players suggests a strong belief in Bitcoin’s future value and potential for further price appreciation.