Analysts have noted a sharp decline in BTC reserves on the centralized platform Kraken

Between August 27 and August 29, 2025, total bitcoin reserves across exchanges fell by about 50,000 BTC. This outflow was one of the sharpest in a year and was almost entirely due to the Kraken exchange. Its reserves fell from about 110,000 to 57,600 coins.

Such movements are usually interpreted as funds being transferred to cold wallets for safety, or as accumulation by institutional traders. Also, some of the volume may be related to settlements via over-the-counter transactions. Regardless of the reason, the scale of the withdrawal significantly reduces the supply of coins on the spot market, which in the short term can be considered a factor in favor of buyers.

However, experts say the effect will depend on whether these coins remain dormant or return to the market through other venues. If the digital funds do not return to circulation, this could increase the pressure of scarcity and support the price. In the coming days, the key factor will be monitoring the wallets of large traders and the dynamics of flows on Kraken.

In parallel, JPMorgan analysts said that Bitcoin remains undervalued compared to gold. They noted that in 2025, the asset’s 12-month volatility fell from about 60% to 30%, which was the lowest level in history. According to them, this strengthens the perception of BTC by institutional investors as a mature asset, and not just a speculative instrument.

The on-chain MVRV Ratio is currently hovering around 2.1. Historically, a rise above 4 has indicated overheated conditions and preceded major corrections. The current reading suggests that Bitcoin holders are still in profit, but the market is far from overly optimistic. This creates a more sustainable cycle and reduces the risk of sharp sell-offs. Thus, declining reserves on exchanges, increasing interest from ETFs, and low volatility paint a picture of a healthy market.

Source: cryptonews.net