Recently, the Ethereum reserves on exchanges have faced a severe test. Data shows that the ETH held across all exchanges has fallen to a historic low, with only about 8% remaining. The situation with Bitcoin isn't much better, as large amounts of liquidity have been withdrawn by institutions and major holders for long-term holdings. Such a level of on-chain chip depletion often signals a major market cycle turning point—before every historic bull run, similar extreme tightening of supply has occurred.

What’s even more noteworthy is the latest trend in traditional finance. Major US banks have publicly announced that starting from 2026, they will offer direct purchase channels for Bitcoin and Ethereum spot ETFs to all clients, with wealth management advisors assisting in allocation. This means that trillions of dollars in traditional funds are about to enter the crypto market through fully compliant channels—digital currencies, once considered fringe assets, are now entering the standard allocation process of Wall Street institutions.

What will be the outcome of these two forces colliding? First, on-chain chips are concentrated in the hands of large holders, with circulating supply continuously shrinking, creating a supply shock. Second, the influx of institutional funds will generate unprecedented demand-side pressure. The supply and demand balance will become severely unbalanced, naturally triggering the price discovery mechanism. Bull markets never wait—they reward those who position early and show no mercy to those chasing prices or panic selling.

So, how should one respond in practice? First, Bitcoin and Ethereum, as the foundational assets of this institutional bull market, should be used as the main positions for anchoring. Every significant pullback is an opportunity to buy in. Second, a small portion of funds can be used to position in high-potential ecosystem projects—Layer2 scaling solutions, DePIN physical infrastructure, AI and crypto integration projects, and real user applications within the Solana ecosystem. These projects often deliver astonishing gains in the mid-stage of a bull market, provided they have genuine narratives and a solid user base.

One final risk reminder: avoid leverage, don’t put all your funds into a single coin, and plan a phased profit-taking strategy in advance. The biggest risk in a bull market isn’t missing out on the rally, but forgetting how to exit at the peak.