Sygnum Bank reports a significant 30% reduction in Bitcoin's liquid supply over the past 18 months, attributed to increasing institutional demand and strategic reserve management. This contraction in supply is anticipated to trigger potential price surges as demand continues to rise. Since late 2023, Bitcoin balances on exchanges have decreased by approximately 1 million BTC, with institutional buyers and ETFs actively withdrawing coins, indicating bullish market conditions. Geopolitical and fiscal uncertainties, including a weakening US dollar, are driving investors towards cryptocurrencies. Additionally, legislative changes in three US states now permit Bitcoin reserves, with international interest emerging from countries like Pakistan and Reform UK. Sygnum highlights Bitcoin's improving volatility profile, noting that upside volatility has surpassed downside volatility over the past three years. Meanwhile, Ether is gaining traction post-Pectra upgrade, drawing attention from financial institutions.