Bitcoin reserves on exchanges plunge to all-time low, fundamentals remain strong

Despite Bitcoin’s price correction occurring 287 days after its latest halving event, on-chain metrics indicate that the fundamentals remain robust. Analyst TheLordofEntry has highlighted several key indicators that demonstrate a sustained demand and strong behavior among holders. This resilience persists even amid recent short-term volatility in the market.

Bitcoin exchange reserves hit all-time low

One of the key fundamentals supporting Bitcoin’s strength is the significant drop in its reserves on cryptocurrency exchanges, reaching an all-time low. This trend suggests that investors are increasingly opting to hold their BTC rather than keeping it on exchanges for potential selling, which is often interpreted as a bullish signal and indicates a possible reduction in immediate selling pressure.

Additionally, the analyst noted that active addresses and transaction volume on the Bitcoin network remain high, reflecting sustained on-chain activity despite the recent price correction.

Moreover, TheLordofEntry pointed out notable changes in the derivatives market, with data indicating a substantial decrease in derivative market positions. This reduction suggests that traders are leveraging less, which could contribute to decreased volatility in the market.

Long term holders continue scooping up Bitcoin

Investor behavior indicates that long-term holders are continuing to accumulate BTC, while short-term holders are starting to show signs of selling. The analyst suggests that long-term trends may remain positive, driven by the accumulation patterns of seasoned investors and the declining exchange reserves.

Bitcoin has struggled to maintain its upward trajectory since reaching a new all-time high of $73,700 in March. Although BTC managed to climb back to around $65,000, various market conditions have since pulled the price below the $60,000 mark.

At present, BTC is hovering around the $62,600 level, while the global crypto market cap has declined by over 1.6% in the last 24 hours.