Bitcoin exchange reserves have reached their lowest point in six years, as investors increasingly move their holdings into self-custody. This trend indicates a long-term accumulation strategy and a reduction in market supply, potentially impacting Bitcoin's price dynamics.
On-chain metrics such as the MVRV Z-Score and Funding Rates have shown an upward trend, reflecting strong market confidence. However, these elevated levels could lead to increased volatility before Bitcoin potentially resumes its upward trajectory. Additionally, the NVT Ratio has surged, suggesting that the network's valuation may be outpacing transaction activity, which could imply overvaluation or a shift towards holding rather than transacting.
Bitcoin Exchange Reserves Plummet to Six-Year Low as Investors Opt for Self-Custody
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