Institutions Continue 'Massive Accumulation'... "Bitcoin, Ethereum Supply Shock Signal"

▲ Bitcoin (BTC), Ethereum (ETH)/AI Generated Image

The global cryptocurrency market has entered a supply shock phase, where circulating supply is rapidly diminishing due to aggressive accumulation by large institutions combined with changes in the regulatory environment.

According to the crypto-focused YouTube channel Paul Barron Network on April 27 (local time), host Paul Barron analyzed that Bitcoin (BTC) and Ethereum (ETH) are being rapidly absorbed by massive capital, leading to a swift decrease in the actual circulating supply within the market. Michael Saylor, Chairman of Strategy, recently acquired an additional 3,273 BTC, expanding his total holdings to 818,334 BTC. Fundstrat Managing Partner Tom Lee and Bitmine also reportedly secured over 5 million ETH, accounting for 4.21% of Ethereum's total supply.

Monetary policy variables are also stimulating market expectations. Amid discussions of a potential change in the head of the Federal Reserve (Fed), Kevin Warsh, mentioned as a candidate for the next chairman, continues to criticize monetary expansion and fiscal spending structures. U.S. President Donald Trump has expressed his intention to foster virtual assets as a key national industry, emphasizing his commitment to securing leadership in blockchain and artificial intelligence sectors.

Institutional changes are also becoming visible. The increased likelihood of the U.S. cryptocurrency market structure bill (CLARITY) being enacted has raised expectations for regulatory clarity. Mike Novogratz, CEO of Galaxy Digital, predicted that the bill could pass as early as June, foreseeing the establishment of a stablecoin regulatory framework and an institutional foundation for capital inflow. Polymarket data also showed the probability of passage within the year rising to 47%.

The adoption of blockchain by traditional financial institutions is also accelerating. Western Union is preparing to launch its Solana (SOL)-based stablecoin, USDPT, next month. An official stated, “USDPT will become an on-chain settlement method that will replace the existing SWIFT (Society for Worldwide Interbank Financial Telecommunication) system.” At the same time, the investment performance of major big tech companies like Amazon and Microsoft in artificial intelligence is also identified as a variable influencing the preference for risk assets.

As institution-led accumulation continues, the market is experiencing an intensifying supply shortage. Amid inflationary pressures, Bitcoin's role as a store of value is being tested, and the decrease in circulating supply acts as a key factor increasing the potential for price revaluation. The virtual asset market is showing a trend of entering a new price formation phase amidst structural changes.

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