Bitcoin’s reserves reach lowest point in six years, causing divergence among traders

Bitcoin’s reserves at exchanges have fallen to a six-year low, indicating that investors prefer to hold BTC securely. This trend suggests a long-term accumulation phase but highlights the possibility of near-term turbulence as traders balance between optimism and risk.

The MVRV Z-Score and NVT Ratio have shown significant increases, with many Bitcoin holders experiencing unrealized gains. However, elevated funding rates and a bullish derivative market signal potential overvaluation and the risk of corrections.

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