Today in crypto, a new report from crypto bank Sygnum suggests massive pressure on Bitcoin’s supply could trigger a price breakout in the near future, a Trump crypto wallet announcement went awry after the US president’s sons denied the family was involved, and education company Classover announced a Solana strategic reserve.
Bitcoin’s shrinking supply may trigger price breakout: Sygnum
Bitcoin’s circulating supply is tightening fast, setting the stage for potential price surges as demand continues to grow, according to Sygnum Bank’s June 2025 Monthly Investment Outlook.
Sygnum analysts noted that Bitcoin’s (BTC) liquid supply had dropped by 30% over the past 18 months, primarily driven by institutional adoption and the rise of Bitcoin acquisition vehicles.
These entities, including exchange-traded funds (ETFs) and corporate buyers, have steadily withdrawn coins from exchanges, a move typically seen as bullish.
“Bitcoin’s fast-shrinking liquid supply is creating the conditions for demand shocks and upside volatility,” the report said.
Since late 2023, Bitcoin balances on exchanges have fallen by about 1 million BTC. The trend is accelerating as a growing number of funds issue equity or debt to purchase Bitcoin, further soaking up available supply.
At the same time, geopolitical and fiscal uncertainties, particularly around the weakening US dollar and ballooning US debt, drive investors toward crypto markets.
Adding to the momentum, three US states recently passed legislation permitting Bitcoin reserves. New Hampshire has already signed such a bill into law, with Texas likely to follow.
Meanwhile, international interest is growing. Sygnum highlighted that Pakistan’s government and Reform UK, the party currently leading in UK election polls, have announced intentions to explore Bitcoin reserve strategies.
Quick Summary of the News:
- Sygnum Bank reports a 30% drop in Bitcoin’s liquid supply over the last 18 months.
- Institutional adoption and Bitcoin ETFs are key drivers of the supply reduction.
- Several US states are considering or have implemented Bitcoin reserve legislation.
- Pakistan and Reform UK are exploring Bitcoin reserve strategies.
Why It Matters: This news highlights a fundamental shift in Bitcoin’s market dynamics. A shrinking supply coupled with sustained or increasing demand could lead to significant price appreciation. The growing institutional interest, evidenced by ETF inflows and corporate adoption, validates Bitcoin’s role as a maturing asset class. Furthermore, the exploration of Bitcoin reserves by nations signals a potential change in how countries view and interact with cryptocurrencies.
Market Impact:
While predicting exact price movements is impossible, the data suggests a bullish outlook for Bitcoin. The following table illustrates the trend:
| Date | Bitcoin Exchange Balance (Approx.) |
|---|---|
| Late 2023 | ~7 Million BTC |
| Present | ~6 Million BTC |
This decrease of 1 million BTC on exchanges signifies a considerable supply shock, potentially amplified by future demand.
Expert Take or Personal Insight:
The Sygnum report reinforces the long-term bullish narrative for Bitcoin. While short-term volatility is inevitable, the underlying fundamentals of supply and demand suggest a continued upward trajectory. I believe that as institutional adoption continues and more nations consider Bitcoin reserves, the digital asset will further solidify its position as a store of value and a hedge against traditional financial uncertainties. However, investors should be mindful of regulatory risks and macroeconomic factors that could influence market sentiment.
Actionable Insight:
Traders and investors should closely monitor Bitcoin exchange balances and ETF inflows as key indicators of supply and demand dynamics. Keep an eye on regulatory developments in the US and globally, as these could significantly impact Bitcoin’s price. Consider dollar-cost averaging to mitigate risk and capitalize on potential dips in the market.
Trump wallet announcement spirals into confusion
A June 3 announcement of a Trump-branded crypto wallet to be launched by a business linked to the Trumps became muddled after US President Donald Trump’s sons distanced the family from it.
Non-fungible token (NFT) marketplace Magic Eden and the firm behind the president’s memecoin that is linked to his sprawling holding company, the Trump Organization, said they were linking up to launch the “Official $TRUMP Wallet by President Trump.”
But the president’s sons, Eric, Barron and Donald Trump Jr., all said they knew “nothing about it” and that the Trump Organization has “zero involvement” with the product. Donald Trump Jr. then added the family’s crypto platform, World Liberty Financial, “will be launching our official wallet soon.”
Crypto skeptic Molly White said the saga was “absolute chaos” and speculated a breakdown in communication between the various Trump-linked businesses.
The Trump Wallet website said the project is a partnership with Magic Eden and GetTrumpMemes.com — the latter is owned by Fight Fight Fight LLC, which is co-owned by a company affiliated with the Trump Organization called CIC Digital LLC. Those two companies together own a majority of the supply of Trump’s memecoin.
Quick Summary of the News:
- Announcement of an “Official $TRUMP Wallet by President Trump.”
- Trump’s sons deny any family involvement.
- Confusion arises regarding the entities linked to the wallet’s launch.
- Potential communication breakdown within Trump-linked businesses.
Why It Matters: This situation highlights the risks and complexities surrounding celebrity-endorsed crypto projects. The lack of clear communication and potential for misinformation can damage investor confidence and lead to market volatility. It also underscores the importance of due diligence before investing in any crypto asset, especially those linked to high-profile figures.
Expert Take or Personal Insight:
The Trump wallet debacle serves as a cautionary tale. While celebrity endorsements can generate hype, they don’t guarantee legitimacy or success. Investors should always prioritize fundamental analysis and risk management over fleeting trends and endorsements. This also raises questions about the regulatory oversight of celebrity-backed crypto projects and the potential for misleading marketing practices.
Actionable Insight:
Exercise extreme caution when considering investments in celebrity-endorsed cryptocurrencies. Conduct thorough research on the underlying technology, team, and business model before investing. Be wary of projects promising guaranteed returns or lacking transparency.
Classover signs $500 million convertible note deal for Solana reserve
Classover, a K-12 education company, has announced a move into crypto through the creation of a Solana reserve.
The company plans to issue up to $500 million in senior convertible notes, with 80% of the proceeds allocated to purchasing Solana (SOL). The move follows a growing pattern of companies expanding into crypto-related strategies along with their core businesses.
According to a June 2 announcement, Classover has already purchased 6,472 SOL worth approximately $1.1 million to start its reserve. The issuance of $500 million in convertible notes comes through a partnership with Solana Growth Ventures.
Classover is an online education company offering learning courses for K-12 students worldwide. On June 3, a day after the announcement, its shares reached $5.45 on the Nasdaq, an intraday rise of 46.5% at the time of publication.
According to the company, the issuance of up to $500 million in convertible notes could be complementary to Classover’s $400 million equity purchase agreement. Combined, these two financing methods would bring the company’s Solana purchasing power to $900 million.
Quick Summary of the News:
- Classover announces a $500 million convertible note deal to create a Solana reserve.
- 80% of the proceeds will be used to purchase Solana (SOL).
- Classover has already purchased 6,472 SOL to start its reserve.
- Classover’s shares experienced a significant intraday rise following the announcement.
Why It Matters: Classover’s strategic move into crypto demonstrates a growing trend of companies diversifying into digital assets. This significant investment in Solana could positively impact SOL’s price and signal confidence in the Solana ecosystem. It also highlights the potential for innovative financing models within the crypto space.
Expert Take or Personal Insight:
Classover’s decision to allocate a substantial portion of its capital to Solana is a noteworthy development. It suggests a growing acceptance of cryptocurrencies as strategic assets and a potential shift in corporate treasury management. While the success of this venture remains to be seen, it could pave the way for other companies to explore similar strategies.
Actionable Insight:
Monitor Solana’s price action following Classover’s announcement. Track Classover’s progress in building its Solana reserve. Consider the potential impact of this investment on the broader Solana ecosystem.
Conclusion:
Today’s crypto news presents a mixed bag of opportunities and risks. The potential Bitcoin supply squeeze paints a bullish picture for the long term, while the Trump wallet confusion serves as a reminder of the importance of due diligence. Classover’s Solana investment highlights the growing integration of crypto into the corporate world. As the crypto landscape continues to evolve, staying informed and adopting a cautious yet strategic approach is crucial for success.