Despite short-term turbulence, key indicators still suggest a bullish long-term outlook for Bitcoin. An analysis by analyst Axel Adler highlights the net flow-to-reserve ratio of Bitcoin on exchanges, which shows that the market is in an accumulation phase, with BTC being transferred from exchanges to long-term storage (addresses), indicating growing investor confidence, and prices may rise as the market matures.
A negative value for this ratio indicates that more BTC is being withdrawn from exchanges than is being deposited, suggesting that users are storing it in private wallets instead of actively trading. This reduces the available supply on exchanges and typically leads to price increases, as it indicates that investors are preparing for long-term gains rather than short-term speculation.
At the end of the bear market in 2022, during a period of heightened fear and uncertainty, this indicator peaked. Given the current market conditions, it shows a similar trend. Despite recent market volatility and BTC struggling to maintain the $100,000 threshold, the continued outflows from exchanges suggest that investors are once again beginning to accumulate Bitcoin. Analysts believe that as exchange reserves steadily decline, potential upward momentum is forming, as these assets are unlikely to enter the market for the long term, providing support for a bullish outlook in the coming years. (Bitcoinist)

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