CoinVoice recently learned that, according to Bitcoinist, 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, which indicates that the market is in an accumulation phase, with BTC moving from exchanges to long-term storage (addresses), suggesting increased investor confidence and potential price increases as the market matures.
A negative ratio indicates that more BTC is being withdrawn from exchanges than deposited, suggesting that users are keeping it in private wallets rather than actively trading.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 peaked. Current market conditions show a similar trend. Despite recent significant market fluctuations, BTC struggles to maintain the $100,000 threshold, but the continuous outflow from exchanges indicates that investors are starting to accumulate Bitcoin again. Analysts believe that as exchange reserves steadily decrease, a potential upward momentum is forming, as these assets are likely not to enter the market for the long term, providing support for a bullish outlook in the coming years. [Original link]
