The exchange reserves are still my personal focus. Looking at the overall exchange reserves over the past week, there hasn’t been much change. However, the trend of more Bitcoin being withdrawn from exchanges continues. This is because the market’s main game has shifted from concerns about the shutdown to expectations of its end. Investors generally believe the market will see some rebound after the shutdown ends. So, after news of the shutdown ending emerged, panic sentiment eased, naturally leading to lower turnover. Investors’ bottom-fishing sentiment has moderately increased. Even though BTC prices saw some pullback on Tuesday, the decline in exchange reserves is still noticeable. Extending the timeline to a year, you can see that overall exchange reserves have been slowly declining over the past two weeks. Reserves and BTC prices are inversely correlated. The market hasn’t seen large-scale selling pressure, and tokens continue to be withdrawn from exchanges. In other words, the recent price drop hasn’t triggered panic selling; instead, funds are steadily accumulating during the dip. This indicates two things: 1. Short-term price fluctuations are not reflective of the real behavior of large on-chain funds. They are more likely driven by derivative leverage liquidations, emotional swings, or passive deleveraging. Most investors haven’t chosen to transfer BTC to exchanges for selling; instead, they are continuing to buy from exchanges and are not sensitive to short-term price movements. 2. Spot demand remains stronger than selling pressure, especially with institutions and large addresses showing a more pronounced accumulation trend. Over the past two weeks, BTC has experienced several quick dips, but exchange reserves have decreased instead. This shows that every dip sees investors buying up low-priced tokens. The weakness in price is more due to weak liquidity rather than increased selling. My impression is that tokens are becoming scarcer, real sellers are decreasing, and real buyers are becoming more patient. This post is sponsored by @Bitget｜Save the most on fees, claim the best rewards, and become a VIP at Bitget!