Matrixport: Exchange BTC balance continues to decline, market structure changes

Matrixport released a daily analysis indicating that the exchange balance of Bitcoin continues to decline, but this diverges from historical patterns.

Traditionally, exchange balances have an inverse relationship with prices, where a decrease in balance usually corresponds to a bullish market environment. However, in this cycle, despite the continuous reduction of BTC balance on exchanges, the price of Bitcoin has retreated from its peak to $86,336, showing a clear divergence signal. Analyst Markus Thielen pointed out that this phenomenon reflects a fundamental change in market structure: as institutional investor participation increases, more and more trades are being completed over-the-counter (OTC). Compared to previous cycles, the current market characteristics show a significant absence of retail trading, with price movements primarily driven by institutional capital inflows and outflows, indicating that institutional funds are gradually dominating the Bitcoin market.