Recent market data is a bit heartbreaking: the withdrawal volume of ETH and BTC on major exchanges has surged, and circulating supply is tightening significantly. This kind of "asset scarcity" situation is indeed rare, and each occurrence tends to trigger considerable market volatility.

What’s more worth paying attention to is the new moves in traditional finance. Major US banks have officially announced: starting next year, they will provide Bitcoin and Ethereum ETF allocation services to clients through wealth advisory channels. This is not just a marketing gimmick, but a signal that trillion-dollar traditional funds are officially entering the market.

**Why is this so critical?**

First, the chips are rapidly consolidating. A large amount of ETH and BTC are being locked up by institutions and high-net-worth individuals, leading to a noticeable decline in market liquidity. This directly means a tightening of supply—the principle that scarcity increases value, which is basic economic law.

Second, demand is brewing. Once bank channels open, behind it lies a huge demand for traditional asset allocation. These institutional investors are not concerned with short-term fluctuations; once their allocation needs are triggered, it will result in sustained buying pressure.

The tightening of supply combined with increased demand has already caused an imbalance in market structure, and what follows is the price discovery process.

**How to respond to this situation?**

A prudent approach is: firmly hold your main positions in BTC and ETH, as they are the core assets of this cycle. Every deep correction can be seen as an opportunity to accumulate at low levels.

Use small positions to explore sectors with real applications—Layer2 solutions, DePIN infrastructure, Solana ecosystem, etc. These areas often see significant gains in the mid-cycle.

Most importantly, manage your risks: avoid leverage, don’t hold full positions, and plan your take-profit points in advance. Many people get caught at the end of a bull market, not because they missed the boat, but because they forget when to take profits and secure gains.