How do changes in Bitcoin reserves on cryptocurrency exchanges reflect potential market supply and demand?
Pourquoi est-ce la bonne réponse?
This is correct because when exchange reserves move up or down, it signals whether traders are depositing Bitcoin to sell (increasing reserves) or withdrawing coins to hold or buy (decreasing reserves). Monitoring these reserve levels offers insights into potential supply pressure or demand pressure. For beginners, imagine an online marketplace: if sellers stock more items on the platform, supply grows; if buyers withdraw items, supply tightens and demand may outpace available stock.
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