Is the situation for Bitcoin improving? Recent reserves and net flows suggest a market reversal

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Bitcoin is facing short-term volatility recently. The reserves at spot exchanges have seen a significant increase, with about 20,000 BTC flowing into the market, indicating that more Bitcoin is being deposited into exchanges, which usually means an increase in trading or selling intentions. Over the past two weeks, the price of Bitcoin has dropped nearly 7%, which may be an early signal of short-term volatility.

Additionally, the net inflow across all exchanges has turned positive, with a net increase of 15,800 BTC, marking that inflows have exceeded outflows. This shift, combined with the increase in reserves, further enhances the possibility of increased trading activity or investors potentially preparing for profit-taking.

While the overall market trend supports accumulation and self-custody, the recent changes may reflect cautious sentiment among investors, suggesting they may be preparing for profit-taking or getting ready for potential price adjustments.

Meanwhile, a report from Bloomberg indicates that South Korea's 'Kimchi Premium'—the price difference of Bitcoin between South Korean exchanges and international exchanges—has reached 3-5%. This phenomenon signifies an increase in demand from South Korean investors, and political turmoil may also exacerbate market uncertainty. Recently, a brief martial law order from the South Korean president and other political events have affected market sentiment. South Korea remains one of the markets with significant cryptocurrency trading volumes, with most trading volume coming from retail investors.

Currently, the price of Bitcoin is around $93,938, having dropped 2.5% in the past 24 hours. The recent support level is at $92,000, which has resisted further downward pressure on the price.

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