Matrixport: BTC balances on exchanges continue to decline, indicating a change in market structure.

According to Mars Finance, Matrixport released a daily analysis stating that while Bitcoin exchange balances continue to decline, this is contrary to historical patterns. Traditionally, exchange balances and prices are inversely related, with a decline in balances typically corresponding to a bullish market environment. However, in this cycle, despite the continuous decrease in exchange BTC balances, the price of Bitcoin has fallen from its high to $86,336, showing a clear divergence. Analyst Markus Thielen points out that this phenomenon reflects a fundamental change in market structure: with increased participation from institutional investors, more and more transactions are being completed over-the-counter (OTC). Compared to previous cycles, this round of market movement is characterized by a near absence of retail trading, with price movements primarily driven by institutional funds, indicating that institutional funds are gradually dominating the Bitcoin market.