Bitcoin Supply Tightens Amid Growing Institutional Interest
The Union of the Right for the Republic (UDR) party in France has proposed a legislative measure to establish a national Bitcoin reserve of 2%, amounting to approximately 420,000 BTC. This reserve would be funded through mining operations, tax payments, and asset seizures to strengthen the country’s financial sovereignty.
Corporate Bitcoin Acquisitions Accelerate
Corporations are increasing their Bitcoin holdings, with ZOOZ Strategy Ltd. recently adding $10 million worth of BTC. This move aligns with broader institutional trends, including BlackRock launching a Bitcoin ETF and Fidelity managing $30.2 billion in Bitcoin inflows, further diversifying institutional portfolios.
Supply Dynamics and Market Impact
- Institutional demand is tightening Bitcoin’s available supply.
- Approximately 2% of all Bitcoins are estimated to be locked in sovereign and corporate treasuries.
- Exchange balances are declining, contributing to lower liquidity on trading platforms.
- On-chain activity shows ongoing accumulation by investors.
These factors have pushed Bitcoin prices up by 6.7% in the past week, reinforcing a bullish market sentiment.
“Rising institutional demand is putting additional strain on Bitcoin’s available supply, driving prices higher amid dwindling market liquidity.”
Industry analysts foresee the Bitcoin price potentially reaching $200,000 as scarcity tightens and institutional interest continues to grow.
Author’s summary: France’s proposed Bitcoin reserve and increasing institutional accumulation sharpen supply constraints, driving Bitcoin prices higher amid growing market demand.
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