Bitcoin exchange reserves have increased over the past week, according to data from CryptoQuant. CryptoQuant analysts dismissed German government exchange transfers as the cause; however, they attributed the rise to increased trading activity by short-term holders on centralized exchanges instead.

Thursday's increase in bitcoin exchange reserves reverses a sharp 2.8% decline in the amount of the digital asset on exchanges that occurred last Friday and also comes as a sudden change to the overall 9.5% decline in exchange reserves that has been happening since the beginning of the year.

According to CryptoQuant data, on Saturday, bitcoin exchange reserves were 2,767,490; however, since then they have increased 0.5% to 2,779,197. This trend increases the liquid supply of bitcoin at a time …