Bitcoin News (June 2, 2025) – Bitcoin’s Supply Hits Critical Low: Is a Bullish Breakout Imminent?

Bitcoin News (June 2, 2025) – Why Bitcoin Is Soaring Despite Bearish Indicators

Bitcoin News (June 2, 2025) – The supply of Bitcoin on centralized exchanges has dropped to its lowest level on record, according to on-chain data from CryptoQuant. As of late May 2025, exchange reserves fell below 2.5 million BTC, reflecting a persistent downtrend that has coincided with a strong price rally. Bitcoin (BTC) recently reached a new all-time high of $111,500, signaling heightened investor interest and shrinking available supply.

Exchange Reserves Diverge from Price

The CryptoQuant chart shows a clear divergence: while Bitcoin’s price (white line) trends upward, exchange reserves (blue line) continue to decline. Historically, decreasing Bitcoin on exchanges tends to precede price volatility, especially when demand rises. This trend suggests that the market may be entering a new phase where limited supply could amplify price movements.

Institutional and Public Accumulation on the Rise

Institutional players remain active. Notably, Strategy added 7,390 BTC in May, bringing its total holdings to 576,230 BTC, or approximately 2.75% of Bitcoin’s total supply, acquired at an average price of $69,726. Other public companies, including GameStop and Japan-based Metaplanet, have also expanded their positions.

At the same time, spot Bitcoin ETFs attracted $5.23 billion in inflows last month, based on SoSoValue data. Governments such as the UAE and Pakistan have reportedly increased accumulation efforts, while U.S. lawmakers are debating the formation of a national Bitcoin reserve.

Technical Outlook: Volatility Ahead?

From a technical standpoint, Bitcoin appears to be in a consolidation phase. The Relative Strength Index (RSI) sits at 52, indicating neutral momentum. The MACD has turned slightly bearish, while short-term moving averages show modest downward pressure. However, BTC remains well above its 200-day EMA and SMA, both still trending upward.

A recovery above the $106,000 short-term moving average could extend the rally toward $110,000–$112,000. However, failure to hold key support could lead to a drop toward $98,000 or even $94,000.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.