Key Insights

• Following President Trump’s announcement of including cryptocurrency assets in the U.S. strategic reserve, billions in XRP and thousands of Bitcoin moved to exchanges, potentially influencing their price fluctuations.
• Analysts from CryptoQuant suggest that recent price volatility in cryptocurrencies indicates reduced real demand, which may hinder a sustained price increase.
• On-chain analysis showed an increase in Bitcoin being transferred to exchanges, significantly rising from thousands to over 6,700 BTC shortly after the announcement. Ethereum also saw a surge with inflows nearing 300,000 ETH within an hour.

This movement implies that many traders are positioning themselves to sell, as large cryptocurrency holdings are often kept in cold storage, away from exchanges. Analysts continue to observe a decline in apparent demand for Bitcoin, reinforcing the belief that sustaining any rally in cryptocurrency prices will be challenging unless demand improves further.