Matrixport: Exchange BTC balances continue to decline, indicating weakening bullish signals.

According to a chart released today by Matrixport, as reported by Odaily Planet Daily, Bitcoin's balance on exchanges continues to decline. Historically, exchange balances and prices have largely shown an inverse relationship: a lower balance usually corresponds to a bullish market, while a higher balance often occurs during a bearish phase. Looking at the overlay of the two curves, a significant divergence has emerged in the current cycle.

As institutional participation increases, more and more transactions are moving off-exchange and being completed on OTC trading desks. This trend indicates that institutional funds are gradually becoming dominant, and the structure of the Bitcoin market is undergoing adjustments and evolution.

Compared to previous cycles, the most significant change in this round of market activity is the near absence of retail investor trading, with price movements driven more by the inflow and outflow of institutional funds.