The supply of Bitcoin on exchanges has dropped to its lowest level since 2018. On-chain data shows that investors are withdrawing their assets from exchanges, leading to a decrease in selling pressure. With the strengthening of institutional demand, this development could signal a new wave of price increase for Bitcoin. Bitcoin’s exchange supply hitting an 8-year low has boosted expectations for market uptrends. According to blockchain analysis firm Santiment’s announcement on March 27th, Bitcoin’s supply on exchanges has dropped to the lowest level since 2018, reaching 7.53%. This indicates that more investors are moving their assets to their storage solutions and reducing available supply for instant sales in the market. The decrease in Bitcoin’s exchange supply is generally interpreted as a positive signal for the market. This suggests a decrease in short-term selling pressure and an increase in investor confidence, supporting upward movement expectations for Bitcoin’s price. INSTITUTIONAL DEMAND CONTINUES TO HAVE A STRONG IMPACT One of the most crucial factors influencing Bitcoin’s price movement is the continued institutional demand. In particular, Bitcoin spot exchange-traded funds (ETFs) have contributed to over a 10% increase in BTC price, with regular inflows since March 14th. In contrast, between February 10th and March 13th, when ETF inflows were negative or stagnant, Bitcoin lost 17% of its value. This trend illustrates that Bitcoin prices are significantly influenced by institutional investor actions and that large investors have a stronger impact on the market compared to individual speculators. STRUCTURAL CHANGES IN THE BITCOIN MARKET Alongside the increasing influence of institutional investors, market dynamics in Bitcoin are also evolving. According to a research article published by OKX on March 25th, price movements are becoming more stable as Bitcoin matures. While past cycles witnessed drops of up to 80%, now even 50% retracements are considered a sign of a bear market. The research suggests that Bitcoin is currently going through a short-term “mini” bear market phase rather than a long-term bear market. One significant indicator of this change is the “Market Value to Realized Value (MVRV) Ratio.” This metric compares Bitcoin’s current price to the average price at which short-term holders bought the coins. The MVRV ratio, which gave a bearish signal before price declines on February 25th, has now dropped below the critical level of the 365-day moving average. Analysts predict that as Bitcoin supply on exchanges continues to decline, this metric will recover and have a positive impact on the price. Bitcoin is trading at $87,353 at 11:50 am Turkey time, approximately 20% below its all-time high of $108,786.