CoinVoice has recently learned that, according to Bitcoinist, despite the turmoil in the short term, 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, which indicates that the market is in an accumulation phase, with BTC being transferred from exchanges to long-term storage (addresses), suggesting increased investor confidence and the potential for price increases as the market matures.
A negative value for this ratio indicates that more BTC is being withdrawn from exchanges than deposited, suggesting that users are storing it in private wallets rather than actively trading.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 reached its peak. From the current market conditions, it shows a similar trend. Despite recent market volatility and BTC struggling to maintain the $100,000 mark, the continued outflow from exchanges indicates that investors are beginning to accumulate Bitcoin again. Analysts believe that as exchange reserves steadily decrease, potential bullish 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. [Original link]
