Is Bitcoin's Market Rebounding? Recent Reserve and Net Flow Indicators May Stimulate the Market or Be Exciting!
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Recently, the reserve of Bitcoin on spot exchanges has significantly increased, with approximately 20,000 BTC inflows, indicating that more Bitcoin is being deposited into exchanges, which usually suggests an intention to trade or sell. This change may lead to further selling pressure on Bitcoin prices. Over the past two weeks, Bitcoin's price has fallen nearly 7%, which may be an early signal of short-term volatility.
Meanwhile, the net inflow across all exchanges has turned positive, with a net increase of 15,800 BTC, in contrast to the previous outflow-dominated trend. This indicates that the inflows to exchanges have exceeded outflows, and combined with the increase in reserves, it enhances the likelihood of increased trading activity or profit-taking by investors.
Market Sentiment Shift, Investors Tend to be Cautious
Although the overall market trend leans towards accumulation and self-custody, the recent changes may reflect cautious sentiment among investors. Many investors may be preparing for potential price adjustments or profit-taking.
South Korea's Kimchi Premium Soars, Political Turmoil Drives Demand
Another noteworthy phenomenon is the surge in South Korea's 'Kimchi Premium,' indicating increased demand for Bitcoin among South Korean investors. The Kimchi Premium measures the price disparity of Bitcoin on South Korean exchange Upbit compared to Coinbase. Recently, this premium has climbed to a range of 3-5%, reflecting strong interest from South Korean investors.
Political turmoil in South Korea also provides context for this change, especially after President Yoon Suk-yeol announced a state of emergency and the subsequent political crisis. South Korea's crypto market remains one of the most active retail markets globally, with trading volumes on South Korean exchanges often exceeding those of traditional securities exchanges. CryptoQuant founder and CEO Ki Young Ju stated that because South Korean cryptocurrency exchanges do not allow corporate accounts, the majority of cryptocurrency trading is driven by retail investors.
BTC Price Trends and Support Levels
Currently, Bitcoin's price is approximately $93,938, down 2.5% in the past 24 hours. Its recent support level is around $92,000; if it falls below this support level, it may intensify further downward pressure on the market.
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