Analyst: Bitcoin Market Turnaround: Why Rising Reserves and Net Flows Matter

Recent changes in Bitcoin metrics signal potential changes in market dynamics. Spot exchange reserves, which have been steadily declining as investors have been pulling BTC out of exchanges, recently saw a significant increase with an inflow of +20K BTC. At the same time, net flows across all exchanges turned positive (+15.8K BTC), reversing the mostly negative trend seen in recent weeks.

What does this mean?

1. Rising Reserves on Spot Exchanges: Rising reserves indicate that more Bitcoin is being deposited on exchanges. This often signals an intent to trade or sell, creating potential selling pressure in the market. After a prolonged downward trend in reserves, this rebound can be an early indicator of short-term market volatility