Analysis: The net inflow of Bitcoin exchanges and reserve ratio indicate that the market is in an accumulation phase

ChainCatcher news, 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 netflow-to-reserve ratio of Bitcoin's exchange net inflows, 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 potential price increases as the market matures.

A negative value for this ratio indicates that more BTC is being withdrawn from exchanges than is being deposited, showing that users are storing it in private wallets rather than actively trading.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 2022 bear market, during a period of heightened fear and uncertainty, this indicator peaked. Current market conditions show 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 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.