Bitcoin reserves plunge to all-time low, fundamentals strong

Despite Bitcoin’s price correction 287 days after its latest halving event, on-chain metrics show fundamentals remain strong.

Analyst TheLordofEntry shared his views on key indicators showing continued demand growth and strong shareholder behavior. This strength is achieved despite recent short-term volatility.

Bitcoin reserves on exchanges have reached an all-time low! 📉

Bitcoin reserves on exchanges continue to decrease, indicating that investors prefer to hold rather than sell. pic.twitter.com/jrefZIrtdM

— TheLordofEntry (@thelordofentry) 13 October 2024

Bitcoin foreign exchange reserves are at an all-time low

One of the most important fundamentals is that Bitcoin (BTC) reserves on cryptocurrency exchanges have fallen to an all-time low.

This trend shows that investors are increasingly choosing to hold their BTC rather than holding it on exchanges for potential selling. A decrease in foreign exchange reserves is often interpreted as a bullish signal. This is also a potential signal of a decrease in immediate selling pressure.

The analyst emphasized that active addresses and transaction volume on the Bitcoin network remain high. This indicates that on-chain activity continues despite the price correction.

TheLordofEntry also highlighted major changes in the derivatives market. According to the data shared by the analyst, derivative market positions have decreased significantly, indicating that investors’ leverage has decreased.

Long-term holders continue to collect Bitcoin

Investor behavior shows that long-term holders continue to accumulate BTC. In contrast, short-term investors are showing signs of selling.

The analyst suggests that long-term trends may remain positive, depending on the savings patterns of experienced investors and dwindling foreign exchange reserves.

Bitcoin has struggled to maintain its positive trend since reaching an all-time high of $73,700 in March. Although BTC managed to rise to the $65,000 level, various market conditions pulled the price below the $60,000 level.

BTC is currently trading at $62,600 at press time, and the global crypto market cap is down over 1.6% in the last 24 hours.