Exchange reserves are an important on-chain metric that helps us understand how much crypto is sitting on centralized exchanges.
This data does not predict price, but it gives useful insight into market behavior.
What Are Exchange Reserves?
Exchange reserves show the amount of cryptocurrency stored on exchanges.
Coins on exchanges are usually ready to be tradedCoins moved away from exchanges are often held in wallets
This makes exchange reserves a behavior indicator, not a trading signal.
Increase vs Decrease: What It Means
Increase in reserves:
More coins are moved to exchanges, which can mean users want liquidity or flexibility.
Decrease in reserves:
Coins are withdrawn from exchanges, often for long-term holding or storage.
Neither is good or bad by itself — context matters.
This chart shows a conceptual trend of exchange reserves over time, helping explain how on-chain data reflects market behavior rather than price direction.
Current Trend (General View)
In general market phases, exchange reserves tend to move slowly, not suddenly.
Gradual changes usually reflect normal investor behavior rather than panic or excitement.
This is why long-term trends are more important than daily movements.
Why Long-Term Investors Care
Long-term investors watch exchange reserves because:
They reflect holding behaviorThey help understand supply availabilityThey show confidence over time, not short-term noise
For investors, this metric is about patience and positioning, not timing the market.
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