TechFlow, December 2 — Matrixport released its daily analysis indicating that Bitcoin exchange balances continue to decline, yet this trend diverges from historical patterns. Traditionally, exchange balances have an inverse relationship with price, meaning declining balances usually correspond to bullish market conditions. However, in this cycle, despite the ongoing reduction in BTC balances on exchanges, Bitcoin's price has dropped from its peak to $86,336, showing a clear divergence signal.
Analyst Markus Thielen pointed out that this phenomenon reflects a fundamental shift in market structure: as institutional investor participation increases, more transactions are being conducted over-the-counter (OTC). Compared to previous cycles, retail trading has been largely absent in this rally, with price movements primarily driven by institutional capital flows, indicating that institutional money is gradually taking control of the Bitcoin market.
