On May 9, Coinbase recorded its largest daily BTC outflow of 2025, as nearly 9,739 BTC—worth over $1 billion—left the exchange, signaling rising institutional demand for Bitcoin.
According to Bitwise’s head of research, Andrei Dragos, the outflow reflects increased interest in Bitcoin from large investors. The movement occurred shortly after the White House announced a 90-day tariff pause in the US-China trade war, which improved market sentiment and pushed Bitcoin’s price above $104,000.
“Institutional appetite for Bitcoin is growing,” Dragos noted in a comment.
Key Drivers Behind the Massive BTC Outflow from Coinbase
The BTC outflow from Coinbase highlights a growing trend where institutional crypto purchases reduce the available supply of Bitcoin on centralized platforms. This reduction in liquid supply often drives price appreciation, especially when demand accelerates.
Recent macroeconomic events contributing to this include:
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US-China trade war de-escalation, reducing fears of abrupt escalation and boosting risk appetite
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Improved investor sentiment across the crypto and equities markets
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Rising expectations of Bitcoin as a hedge asset amid geopolitical and inflation-related uncertainty
“The temporary truce lowers the likelihood of sudden shocks, encouraging greater risk-taking in crypto and equities,” explained Nansen’s lead analyst, Aurelie Barther, to Cointelegraph.
Supply Shock on the Horizon?
Recent on-chain data suggests that illiquid Bitcoin supply—tokens held in wallets with no history of selling—is steadily rising. According to Glassnode, this trend indicates aggressive accumulation by long-term holders and institutional players.
Bitwise’s Dragos emphasized:
“In 2025 alone, corporations have purchased four times more Bitcoin than all U.S. spot Bitcoin ETFs combined. We’re approaching 200,000 BTC, nearly equivalent to the total new supply expected for the year.”
This tightening supply could create conditions for a Bitcoin supply shock, where even modest demand spikes significantly drive prices upward.
BTC Market Overview: Price Action and Institutional Trends
As of writing, Bitcoin is trading around $103,600, gaining 0.5% over the past 24 hours and 10% in the past week, according to CoinGecko. The consistent price strength adds weight to the narrative of rising institutional demand for Bitcoin.
BTC Quick Stats:
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Current bitcoin price: ~$103,600
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Weekly gain: +10%
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Largest BTC outflow from Coinbase since January: 9,739 BTC
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Estimated value of outflow: Over $1 billion
Coinbase Joins the S&P 500
Adding further momentum to the exchange’s influence, Coinbase will officially join the S&P 500 index on May 19, becoming the first crypto company to do so. This inclusion may drive additional institutional demand for bitcoin, as exposure to Coinbase indirectly links to BTC performance.
Conclusion
The bitcoin outflow from Coinbase, driven by institutional buying and macroeconomic tailwinds like US-China tariff relief, signals renewed confidence in the crypto market. As supply tightens and demand persists, Bitcoin’s price outlook for 2025 remains bullish—though Bitwise warns that short-term corrections may occur due to overheating.
Investors and traders should monitor BTC exchange outflows, institutional impact on bitcoin price, and illiquid bitcoin supply trends as key indicators for the months ahead.