Bitcoin Exchange Balances Hit Record Low, Supply Crunch Intensifies
On-chain data shows that the reserves of Bitcoin on cryptocurrency exchanges have fallen to historic lows, indicating that available inventory is rapidly depleting.
10X Research highlighted this significant trend in a report on Sunday, noting that the number of Bitcoins available for purchase has dramatically decreased. Unlike the late summer period, where a sudden influx of funds led to a brief rebound in exchange reserves, no similar replenishment has occurred this time, further exacerbating the supply tightness.
Optimistic Momentum in Bitcoin and Crypto Market
Analysts believe favorable market catalysts are driving the sustained growth expectations for Bitcoin and the entire crypto ecosystem. Despite recent price volatility, investment firm Bernstein predicts that Bitcoin will reach $200,000 by the end of 2025, calling this forecast "relatively conservative."
Trump's Support Policies Boost Market Confidence
Bitcoin's recent price surge to nearly $100,000 is primarily attributed to incoming President Trump’s promise to establish a U.S. Bitcoin reserve, support crypto mining, and formulate industry-friendly regulatory policies. This policy shift solidifies Bitcoin's status as a value storage tool for investors.
Long-Term Holders Restrict Bitcoin Liquidity
On-chain analysis shows that long-term holders continue to hold their Bitcoin, further limiting liquidity and reducing the amount of Bitcoin flowing into exchanges. Data from 10X Research and Glassnode indicates a sharp decline in Bitcoin supply on exchanges, contrasting with price trends of the asset. Bitcoin's price has recently approached the $100,000 mark.
Currently, only the three major exchanges Binance, Coinbase, and Bitfinex report having sufficient Bitcoin reserves to meet buyer demand, highlighting the issue of supply scarcity.
Institutional Interest and Macro Trends
The supply crunch aligns with rising institutional interest in Bitcoin financial products (such as spot ETFs), further driving demand growth. Analysts believe that the continued decline in exchange inventories will exert greater upward pressure on prices as the demand from retail and institutional investors continues to increase.
