Recent shifts in Bitcoin metrics suggest potential changes in market dynamics. Spot exchange reserves, which have been declining as investors moved BTC off exchanges, recently saw a significant uptick with a +20K BTC inflow. Concurrently, netflows across all exchanges turned positive (+15.8K BTC), reversing the predominantly negative trend of recent weeks.

Rising Spot Reserves: The growth in reserves indicates more Bitcoin is being deposited into exchanges, often signaling an intent to trade or sell. This could introduce selling pressure into the market and may be an early indicator of short-term volatility.

Positive Netflows: Positive netflows suggest that inflows to exchanges are exceeding outflows. This, along with rising reserves, strengthens the likelihood of increased trading activity or profit-taking by investors.

Key Takeaways: While the broader trend has favored accumulation and self-custody, these recent changes may reflect growing caution or a shift in sentiment. Investors could be preparing for profit-taking or anticipating a price correction. If reserves and netflows continue to rise, increased volatility and potential downward pressure on Bitcoin’s price may occur in the near term. Monitoring exchange activity is crucial for early signs of changing market sentiment.