The supply of Bitcoin on exchanges hit the lowest level since 2018. On-chain data shows investors are moving their assets off exchanges, reducing selling pressure. With strengthening institutional demand, this development could signal a new wave of price increase in Bitcoin. Bitcoin’s supply on exchanges dropping to the lowest level in the last eight years has raised expectations of a market uptrend. According to the statement made by the blockchain analysis firm Santiment on March 27, Bitcoin’s supply on exchanges has dropped to 7.53%, the lowest level since 2018. This indicates that more investors are moving their assets to their own storage solutions and reducing the available supply in the market for immediate selling. Decreasing Bitcoin supply on exchanges is generally interpreted as a positive signal for the market. This situation, which indicates a decrease in short-term selling pressure and an increase in investor confidence, supports expectations of an upward movement in Bitcoin price. INSTITUTIONAL DEMAND CONTINUES TO HAVE A STRONG IMPACT Institutional demand remains one of the most important factors driving the price movement of Bitcoin. Especially, Bitcoin spot exchange-traded funds (ETFs) have contributed to over a 10% rise in BTC price since March 14, by showing regular inflows. In contrast, between February 10 and March 13, while ETF inflows were negative or stagnant, Bitcoin experienced a 17% decline. This trend highlights that Bitcoin prices are largely influenced by institutional investor movements, and big 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, the market dynamics of Bitcoin continue to change. According to a research paper published by OKX on March 25, the price movements of Bitcoin are becoming more stable as it matures. While past cycles saw declines of up to 80%, now even 50% retracements are considered a sign of a bear market. The research claims that Bitcoin is currently going through a short-term “mini” bear market process rather than a long-term bear market. One important 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 acquired their coins. Before the price drops on February 25, the MVRV ratio signaled a decline, and it is now below the critical level of the 365-day moving average. Analysts predict that as the Bitcoin supply on exchanges continues to decrease, this metric will recover and have a positive impact on the price. Bitcoin is trading at $87,353 at 11:50 AM Turkish time, approximately 20% below its all-time high of $108,786.