CryptoQuant：BTC Exchange reserves rise, while spot demand turns negative again
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AT A GLANCE
CryptoQuant states that BTC supply-demand indicators are diverging, conditions for a bottom are present, but a solid recovery still requires sustained spot demand and broader accumulation.
Article
【CryptoQuant：BTC The supply-demand balance is shifting, but a strong recovery still faces challenges]
CryptoQuant's latest analysis indicates that, although Bitcoin has support, the recovery process is uneven. First, exchange reserves rose from approximately October at the beginning of 2670000 BTC to approximately 2680000 BTC, still far below the January level. Lower reserves do not necessarily mean supply is continuing to contract, and changes in reserves may also reflect custody changes; rising reserves alone do not prove that selling is occurring. Second, the recovery in spot demand has faltered, and 30-day spot demand turned negative again after once approaching zero. Perpetual contract demand is positive, supporting overall demand. Finally, whale behavior has diverged: addresses holding 100–1000 BTC have continued net accumulation over the past 60 days, but the scale of accumulation is below the peak at the end of September; the group's net reduction among holders of 1000–10000 BTC has approached zero; the group holding more than 10000 BTC has registered net reductions. Accumulation has not become broad-based. CryptoQuant believes that conditions supporting a Bitcoin bottom remain in place. For a solid recovery, spot demand must provide sustained support, buyers must be able to absorb BTC flowing back to exchanges, and accumulation must spread to more holder groups. Market expectations regarding the U.S. midterm elections and monetary policy must also translate into actual buying. The key is whether rising prices can attract an expanding and persistent base of buyers.
Key points
01
CryptoQuant's latest analysis states that, although Bitcoin has support, the recovery process is uneven.
02
Exchange reserves rose from October approximately at the beginning of 2670000 BTC to approximately 2680000 BTC, still far below the January level.
03
The original text notes that rising reserves alone do not prove that selling is occurring.
04
30-day spot demand turned negative again after once approaching zero.
05
Perpetual contract demand is positive, supporting overall demand.
06
Addresses holding 100–1000 BTC have continued net accumulation over the past 60 days, but the scale of accumulation is below the peak at the end of September.
07
The group's net reduction among holders of 1000–10000 BTC has approached zero.
08
The group holding more than 10000 BTC has registered net reductions.
09
CryptoQuant believes that conditions supporting a Bitcoin bottom remain in place.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
These indicators do not point in a consistent direction:BTC on exchanges increased slightly, spot demand weakened, but perpetual contract demand remained positive; addresses holding different amounts also showed both accumulation and reductions. Therefore, the original text considers the market to have conditions for a bottom, but this does not yet indicate that a strong recovery has taken shape.
Why it matters to readers
The original text identifies sustained spot buying, the market's ability to absorb BTC flowing back to exchanges, and whether accumulation spreads to more holder groups as important conditions to watch for a solid recovery.
Beginners should not simply equate an increase in exchange reserves with selling, nor should they judge price direction based on a single indicator; they can monitor spot demand, contract demand, and position changes among addresses of different sizes together.
Risks and unknowns
The relevant data and assessments come from CryptoQuant analysis; the original text does not provide methodology or data details that can be independently verified.
Changes in exchange reserves may reflect custody changes and cannot independently prove supply changes or selling.
Not specified in the original text October Beginning,January and September the specific corresponding year for the end.
It remains uncertain whether expectations regarding the U.S. midterm elections and monetary policy will translate into actual buying activity.
Related Developments
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It remains uncertain whether price increases can attract an expanding and sustained group of buyers.
Related concepts
Exchange reserves
This term is not in the glossary yet. Browse related concepts in the glossary.
A derivative contract with no expiration date, designed for continuous holding, whose funding rate mechanism helps keep its price close to that of the underlying asset.
