On-chain data shows Bitcoin exchange reserves have sharply increased in value, a sign that the selloff may not be over yet.
Bitcoin Exchange Reserve Observes Rapid Rise
As pointed out by an analyst in a CryptoQuant post, a high number of coins have entered exchanges over the last day.
The “exchange reserve” is an indicator that measures the total amount of Bitcoin currently present in wallets of all centralized exchanges.
When the value of this metric goes up, it means the supply on exchanges is going up as investors are depositing a net number of coins.
As holders usually transfer to exchanges for selling purposes, such a trend could be bearish for the price of the crypto.
Related Reading | Panic Vs Pandemic: Crypto Market Is