According to ChainCatcher, analyst Axel Adler pointed out that Bitcoin's exchange net inflow to reserve ratio shows that the market is in an accumulation phase and BTC is being transferred from exchanges to long-term storage.
A negative ratio indicates that more BTC is being withdrawn from exchanges than deposited, and investors tend to hold for the long term rather than trade short term, reducing the available supply on exchanges.
The indicator peaked at the end of the bear market in 2022. Despite recent market volatility and BTC's difficulty in maintaining $100,000, continued outflows from exchanges show increased investor confidence and a long-term bullish outlook.
