CryptoQuant Exposes Hidden Engine Fueling Bitcoin’s Meteoric Rally

Forget ’institutional adoption’—the real catalyst might surprise you.

Behind Bitcoin’s gravity-defying surge lies a stealth force most analysts missed. CryptoQuant’s latest on-chain forensics reveal whales aren’t just buying—they’re engineering a supply shock that’d make OPEC blush.

The twist? This isn’t your 2021 retail frenzy. Cold wallets are swallowing coins faster than exchanges can restock, creating a liquidity vacuum that sends algorithms into bidding wars. Meanwhile, Wall Street funds are still drafting their ’crypto due diligence’ reports—classic.

One chart exposes the brutal math: available BTC reserves just hit a 7-year low while open interest screams ’FOMO.’ When the last coin gets hoarded, even the skeptics will scramble. Tick-tock.

TLDR

• Bitcoin prices have sharply increased, with US-based buying activity identified as the primary driver of this bull market.
• CryptoQuant data shows that Bitcoin price surges have consistently followed large-scale accumulation by US entities.
• The availability of Bitcoin on exchanges has decreased, contributing to upward pressure on prices due to limited supply.
• BTC surpassed $73,000 after the SEC approved spot ETFs in early 2024, encouraging regulated institutional investment.
• By January 2025, BTC reached $94,566.59 and continued to climb to $108,749, according to CoinMarketCap.

Bitcoin (BTC) price has sharply risen, with US-based buying activity cited as the key driver of recent market momentum. CryptoQuant data reveals a consistent pattern where BTC price increases follow major accumulation phases by US entities. This shift is reinforced by reduced Bitcoin availability on exchanges, indicating strong domestic demand.

US Buying Activity Pushes Bitcoin Prices Higher

Bitcoin demand in the United States has surged in recent months, according to a report from blockchain analytics firm CryptoQuant. The “US to the Rest Reserve Ratio” chart tracked Bitcoin holdings by American entities relative to global ones. Data showed strong price surges coinciding with increased holdings from US-based institutions and individual buyers.

Bitcoin Bull Market Led by U.S. Entities

“Last year, when U.S. entities began increasing their bitcoin holdings, the price of Bitcoin surged significantly.” – By @t0_god

Read more ⤵️https://t.co/POsuj0Mz5D pic.twitter.com/hn4H2Us1h0

— CryptoQuant.com (@cryptoquant_com) May 22, 2025

BTC’s value crossed $73,000 after the SEC approved spot ETFs in early 2024, opening doors for regulated institutional ownership. By January 2025, Bitcoin reached $94,566.59, more than double its 2023 closing value of $42,258. The rise continued, and Bitcoin now trades at $108,749, as shown by CoinMarketCap figures.

Throughout this period, CryptoQuant reported declining exchange reserves of Bitcoin, which restricted market supply and supported upward price pressure. This behavior reflects a market structure where accumulation leads to price spikes due to lower trading liquidity. Such buying patterns have predominantly originated from the United States.

Institutional and Corporate Demand Increases

Michael Saylor’s firm, Strategy, recently expanded its Bitcoin portfolio by acquiring 7,390 BTC worth $764 million. This acquisition brought Strategy’s total Bitcoin holdings to 576,230 BTC, signaling rising institutional confidence. This large-scale corporate demand reinforces the ongoing trend of BTC accumulation in the United States.

These purchases were strategically timed with BTC yield improvements and increased market participation by regulated entities. Spot ETFs have played a major role in encouraging broader adoption within the country. US entities have shown consistent purchasing behavior during key market windows.

Furthermore, CryptoQuant’s analytics confirm that US-led buying waves typically preceded major upward price moves. This alignment between demand and price action strengthens the correlation between domestic accumulation and BTC growth. Such trends have remained stable through early 2025.

US Policy Shifts Amplify Bitcoin Momentum

The policy environment in the United States has also accelerated BTC’s upward trajectory. Michigan introduced House Bill 4087, allowing crypto investments using state funds up to 10% of stabilization reserves. Additional bills—HB 4510, 4511, 4512, and 4513—were introduced to formalize the state’s stance on cryptocurrencies further.

In March 2025, President TRUMP signed an executive order to create a strategic reserve using Bitcoin seized in past investigations. This marked a pivotal federal move to incorporate BTC into national asset frameworks. It also distinguished the US from countries like the UK, which declined similar initiatives.