10x Research noted in a recent report that Bitcoin balances on cryptocurrency exchanges have reached historic lows, with on-chain data showing a sharp decline in the number of Bitcoins available for purchase.
The report stated that this sharply contrasts with the trend at the end of summer, when a sudden influx temporarily replenished exchange reserves. However, this time there has been no such increase in inventory, exacerbating the supply tightening.
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 seen as a stabilizing force in the market) are firmly holding their positions, limiting Bitcoin inflows to exchanges and reducing liquidity.
It pointed out that currently only three major exchanges (Bitfinex, Binance, and Coinbase) report sufficient Bitcoin reserves to meet buyer demand. Smaller exchanges are facing increasing challenges in maintaining liquidity, which could lead to heightened price volatility. (Decrypt)

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