Bitcoin Exchange Reserves Soar to New High, Warning Signs Emerge

A warning sign is emerging in the Bitcoin market as exchange reserves have hit a new high of 685,000 BTC. This increase in supply could lead to a price drop if it's sold into the market.

The Federal Reserve's hawkish stance has contributed to the risk-off attitude, with Bitcoin falling by 3% on Friday and Ethereum down by 2.74%. The recent rebound from $60k to $80k may have accelerated the increase in exchange reserves.

Joao Wedson, CEO of Alphractal, warns that the extremely low levels of the Bitcoin Network Stress Index could signal an imminent price move. This metric combines hash rate volatility, fee behavior, and active supply fluctuations to map network stress.

However, some analysts see a bullish impulse in the market. Ali Martinez observed that larger wallets are accumulating BTC while retail wallets are selling, indicating confidence in a bull regime shift.