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Key Insights:
- Bitcoin’s exchange reserves dropped by 25,000 BTC, signaling long-term accumulation.
- Analysts suggest Bitcoin price may stay subdued until U.S. sentiment improves.
- Active and new Bitcoin addresses rise, reflecting strong demand amid market uncertainty.
On Sunday afternoon, U.S. President Donald Trump unveiled plans for a crypto reserve, naming Bitcoin specifically. The announcement triggered an immediate surge in digital asset prices, particularly in Bitcoin price.
Within hours, the Bitcoin price surged to $95,000, gaining $10,000 in just 12 hours. However, this upward momentum was short-lived as the market faced new pressures that would soon reverse Bitcoin’s gains.
Uncertainty and Resistance at $95,000
As the U.S. government introduced tariffs that took effect today, uncertainty crept into the market. Bitcoin’s price struggled to hold above the $95,000 mark and encountered strong resistance.
The price retraced quickly, dropping below $90,000. This decline was further exacerbated when Trump announced a halt in military funding for Ukraine. As a result, Bitcoin lost value, falling to $82,500 over the past few hours. Despite a slight recovery of more than $1,000, Bitcoin is still nearly 7% lower on the day, now trading at $85,003.
Bitcoin Exchange Reserves Reflect Accumulation Trend
Alongside the price fluctuations, Bitcoin’s exchange reserves have been declining. Since February 15, Bitcoin exchange reserves have decreased significantly, from around 2.475 million BTC to 2.4516 million BTC by March 5, marking a net outflow of about 25,000 BTC.
This decline in reserves signals a shift, with more Bitcoin being withdrawn from exchanges, likely for long-term storage. Lower exchange reserves often indicate reduced selling pressure, which could support future price movements.
A deeper look into the “Total Exchanges Netflows” chart further supports this trend. In the past 24 hours, the netflow showed a withdrawal of -3.02K BTC, indicating more Bitcoin left exchanges than entered.
Over the last seven days, the netflow was -6.23K BTC, reinforcing the ongoing outflow trend. The 30-day netflow stands at -3.75K BTC, confirming that the withdrawals have been consistent over the past month. These netflows suggest that investors are continuing to move Bitcoin off exchanges, possibly for self-custody. If this trend persists, the reduced sell-side liquidity could apply upward pressure to Bitcoin’s price.
Rising Active and New Bitcoin Addresses
Meanwhile, there has been a noticeable increase in Bitcoin’s active and new addresses. The seven-day change in active addresses shows a growth of 14.30%, reflecting a higher volume of transactions on the network.
Similarly, new addresses have grown by 12.49%, pointing to an increasing number of users adopting Bitcoin. Notably, the number of zero-balance addresses also rose by 18.89%, which may suggest that older wallets are becoming active again or that Bitcoin is being consolidated into non-custodial wallets.
These trends align with the decrease in exchange reserves and negative netflows, further confirming that investors are withdrawing Bitcoin for long-term holding. As more users join the network and activity increases, it becomes clear that demand for Bitcoin remains strong. The combination of decreasing exchange reserves and rising demand could significantly impact the market in the coming weeks.
Analysts Weigh In on Bitcoin’s Future
Notably, the latest Bitcoin price reduction has led to differing perspectives from market analysts about upcoming Bitcoin price movements. According to Ki Young Ju, CEO and Founder of CryptoQuant, Bitcoin price levels will probably continue their current low trend until positive U.S. market indicators appear.
He examined Bitcoin on-chain activities and discovered reduced movement coupled with stable essential metrics. According to Ju the market fundamentals, which include rising mining rig numbers, remain solid.
The price activity of Bitcoin during 2023 and 2025 displays equivalent patterns, according to analyst, Mister Crypto. Both years saw major events, such as the Bitcoin ETF announcement in 2023 and the crypto reserve announcement in 2025, which caused a temporary sell-off after the news was priced in.
According to Mister Crypto, Bitcoin typically follows a “sell the news” pattern, where a price surge is followed by a brief pullback, after which it recovers.
Bitcoin price performance received further analysis from prominent analyst Captain Faibik. Faibik pointed out Bitcoin remains inside a weekly Rising Wedge pattern as the 50-week moving average (MA50) nears $75.7K position as vital support point.
According to him, Bitcoin has the potential to reach $120,000 before the end of this month. Failures in support from the MA50 could trigger a break down of the wedge pattern to potentially reach the $54K-$55K support area.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
