Bitcoin’s supply on exchanges has dropped to the lowest level since 2018. On-chain data shows that investors are withdrawing their assets from exchanges, decreasing selling pressure. With the strengthening of institutional demand, this development could herald a new wave of price increases in Bitcoin. The decrease in Bitcoin’s supply on exchanges has fallen to the lowest level in the past eight years, raising expectations for a surge in the markets. According to the announcement made by the blockchain analysis firm Santiment on March 27, Bitcoin’s supply on exchanges dropped to 7.53%, the lowest level since 2018. This indicates that more investors are moving their assets to their own storage solutions and decreasing the supply available in the market for instant sales. The decline in Bitcoin’s supply on exchanges is generally interpreted as a positive signal for the market. This signals a decrease in short-term selling pressure and an increase in investor confidence, supporting expectations of upward movement in Bitcoin’s price. INSTITUTIONAL DEMAND CONTINUES TO HAVE A STRONG IMPACT. One of the most critical factors influencing Bitcoin’s price movement is the ongoing institutional demand. Specifically, Bitcoin spot exchange-traded funds (ETFs) have seen consistent inflows since March 14, contributing to a more than 10% increase in the BTC price. In contrast, from February 10 to March 13, as ETF inflows followed a negative or stagnant trend, Bitcoin lost 17% of its value. This trend indicates that Bitcoin prices are largely affected by institutional investor movements and that large investors have a stronger influence on the market compared to individual speculators. STRUCTURAL CHANGES IN THE BITCOIN MARKET In addition to the increasing influence of institutional investors, the market dynamics of Bitcoin continue to evolve. According to a research article published by OKX on March 25, as Bitcoin matures, price movements become more stable. While past cycles have seen drops of up to 80%, now, even 50% retracements are considered signs of a bear market. The study suggests that Bitcoin is currently going through a short-term “mini” bear market rather than a long-term bear market. One of the key indicators 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 their coins. Before the price drops on February 25, the MVRV ratio gave a bearish signal and has now dropped below the critical level of the 365-day moving average. Analysts predict that as the supply of Bitcoin on exchanges continues to decrease, this metric will recover and have a positive impact on the price. As of 11:50 Turkish time, Bitcoin is trading at $87,353, approximately 20% below its all-time high of $108,786.