In previous cycles, surging reserves on major exchanges such as Coinbase have often coincided with increased liquidity and upward price momentum. More reserves typically indicate that investors are confident enough to hold large positions on regulated exchanges, signaling trust in both the assets themselves and in broader market conditions.
Three factors stand out in this latest recovery:
- Institutional demand is returning. Coinbase continues to serve as the go-to exchange for large funds, corporations, and traditional financial players entering crypto.
- Ethereum and Bitcoin remain dominant. Both assets account for the bulk of accumulation, reinforcing their role as digital blue chips.
- Stablecoin inflows are rising. This reflects sidelined capital ready to rotate into BTC, ETH, and other assets once favorable conditions appear.
