Starting March 10, 2025, there has been a major change in how Bitcoin trades. This comes as the daily netflow record went from positive to negative. So, more Bitcoin is being taken out of exchanges by retail traders than deposited by them. According to Axel Adler Jr., a popular analyst, every day about 3,600 BTC leave exchanges, which is seen by the market as a positive sign or a bullish move.
When deposits and withdrawals of BTC to exchanges are compared, netflow tells us the balance among people who want to sell or buy cryptocurrencies. When the netflow is negative, it means there is more accumulation outside the exchanges, less supply for trading. This boosts confidence in investors as they believe prices will rise. This continued slide in netflow started after December’s 12,100 BTC peak, which showed strong selling in the Bitcoin market. However, it has now turned into a period of accumulating.
Image 1- Bitcoin Exchange Flow, provided by Axel Adler Jr, published on X, June 3, 2025
This chart also demonstrates the transition with periods of buying (green areas) marking accumulation. Periods of selling (red areas) indicate loss of Bitcoins from the exchange reserves. Since early 2025, the data suggests that both retail investors and institutions are becoming more confident and are buying more.
Significant Decrease in CEX Bitcoin Reserves Reinforces Bullish Outlook Despite Availability of Large Supply
Between November 2024 and May 2025, the amount of Bitcoin held by centralized exchanges (CEX) decreased by close to 668,000 BTC. Even though this suggests buyers are very active, a dearth of Bitcoin on exchanges cannot be determined by this trend. There are approximately 2,432,989 BTC left on exchanges in June 2025, which shows traders still have liquidity.
Image 2- Bitcoin Exchange Reserve, provided by CryptoQuant, published on X, June 2, 2025
Exchange reserve numbers (shown in orange on the chart) have steadily decreased as the price of Bitcoin (the black line on the chart) has increased. When reserves go down, it may mean long-term holders are removing BTC from exchanges for safer storage or trading not in the spot market. This often limits sell-side supply and raises prices.
Still, the value of the Bitcoin reserves held on exchanges stands at about a quarter of a trillion dollars, which is $253.4 billion based on today’s Bitcoin rates. This shows how much trading can happen and how much support is available. In other words, there is less risk of BTC becoming very volatile due to a lack of liquidity.
Market Interpretation: Withdrawal Trends and Reserve Reductions Signal Sustained Bullish Momentum
Bitcoin exchange netflow and exchange reserves patterns both suggest that the bullish cycle continues, maturing to an end in mid-2025. The fact that more BTC is moving into storage rather than exchanges may result in less BTC being put up for exchange trading, which usually raises prices.
In addition, a decline in exchange reserves since late 2024 reflects that investors are still holding on rather than selling. As a result, the huge amount of BTC held on exchanges ensures there is enough liquidity. Due to these trends, investors seem confident, and the overall market behaviour is shifting from fast sales to methodical buying activity.
The large amount of BTC sold in December last year differs greatly from the current situation. This is where Bitcoin is being bought, hinting at a shift to the bullish phase. All in all, Bitcoin’s supply on exchanges is down, withdrawal speeds are higher, and liquidity balances are stable. These are clear signs that the bullish trend is still holding in mid-2025. Along with studying pricing trends, traders and investors are advised to look at these metrics to have a full picture of Bitcoin’s path in cryptocurrencies.
The post How Declining Bitcoin Exchange Reserves and Negative Netflow Patterns Are Driving Sustained Bullish Momentum in the Cryptocurrency Market Through 2025 appeared first on Coinfomania.
