Institutions Continue 'Mega Accumulation'...'Bitcoin and 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 decreasing due to aggressive accumulation by large institutions combined with changes in the regulatory environment.

According to the crypto-specialized YouTube channel Paul Barron Network on April 27th (local time), host Paul Barron analyzed that Bitcoin (BTC) and Ethereum (ETH) are being rapidly absorbed by massive capital, leading to a quick reduction in their 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 have 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 stated his intention to foster virtual assets as a key national industry, emphasizing his resolve to secure leadership in the 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. Galaxy Digital CEO Mike Novogratz predicted that the bill could pass as early as June, foreseeing the establishment of a stablecoin regulatory framework and an institutional basis for the inflow of institutional funds. 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. A company 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 such as Amazon and Microsoft in artificial intelligence is also identified as a variable that will influence the preference for risk assets.

As institution-led accumulation continues, a supply shortage is intensifying in the market. Under inflationary pressure, Bitcoin is being tested for its role as a store of value, and the reduction in circulating supply is acting as a key factor in increasing the possibility of price revaluation. The virtual asset market is showing a trend of entering a new price formation phase amidst structural changes.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*