BlockBeats reports that on December 2, 10x Research pointed out in a recent report that Bitcoin balances on cryptocurrency exchanges have reached a historic low, with on-chain data showing a sharp decline in the amount of Bitcoin available for purchase.
The report states that this contrasts sharply with the trend seen at the end of summer, when a sudden influx temporarily replenished exchange reserves. However, this time there has been no such inventory increase, exacerbating supply tightness.
Analysts indicate that Bitcoin and the broader cryptocurrency market are being driven by favorable catalysts, suggesting continued growth over the next year. On-chain analysis shows that long-term holders (often viewed as a stabilizing force in the market) are firmly holding their positions, limiting Bitcoin inflow to exchanges and reducing liquidity.
It points out that currently only three major CEXs (Bitfinex, Binance, and Coinbase) report having enough Bitcoin reserves to meet buyer demand. Smaller exchanges are facing increasing challenges in maintaining liquidity, which could lead to heightened price volatility. (Decrypt)
