The supply of Bitcoin on exchanges has reached a seven-year low, dropping to 2.488 million BTC, the lowest level since October 2018. Despite a slight increase over the weekend, the total exchange reserves remain critically low. Currently, Bitcoin is priced around $95,400, following a week of gains as investors respond to evolving economic conditions. Recent data indicates a significant inflow to Bitcoin funds, leading to a $3.2 billion increase in the week ending April 28. This marks a reversal from previous weeks of outflows, suggesting a renewed interest in Bitcoin and a move away from more volatile altcoins. The indicators of retail engagement are growing, with a decrease in the dominance of large holders in trading activity, which suggests a more organic demand for Bitcoin amidst uncertain market conditions. As Bitcoin trends upward, narratives likening it to digital gold are inviting further scrutiny, especially regarding its correlation with other financial instruments like gold and tech stocks. The Bitcoin dominance index continues to fluctuate, reflecting shifts in investor sentiment towards the cryptocurrency, creating a backdrop for potential renewed accumulation. Recent price actions may indicate a cautious optimism in the market, especially with discussions surrounding stability and the impact of economic policy on cryptocurrency performance.

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