The approval of a Bitcoin ETF on January 11, 2024, has changed the crypto market landscape. Unlike previous cycles, this time reserves on exchanges have decreased as the price of Bitcoin has increased.

This decrease reflects the increasing demand from institutional investors who are choosing to hold Bitcoin for the long term, facilitated by ETFs. With a fixed supply of Bitcoin and reduced availability on exchanges, this dynamic could drive a more sustained and significant price increase than in previous cycles.

This change underscores Bitcoin’s increasingly important role as a scarce asset in institutional portfolios, indicating the potential for unprecedented market behavior.