ChainCatcher news, according to Decrypt's report, 10x Research pointed out in a recent report that the Bitcoin balances of cryptocurrency exchanges have reached a historical low, with on-chain data showing a sharp decline in the amount of Bitcoin available for purchase. The report states that this stands in stark contrast to the trend at the end of summer, when a sudden influx temporarily replenished the reserves of exchanges. However, this time there has been no such inventory increase, exacerbating the supply tightening.
Analysts say that Bitcoin and the broader cryptocurrency market are being driven by favorable catalysts, indicating 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 inflows to exchanges and reducing liquidity.
It points out that currently only three major exchanges (Bitfinex, Binance, and Coinbase) report having sufficient Bitcoin reserves to meet buyer demand. Smaller exchanges are facing increasing challenges in maintaining liquidity, which could lead to heightened price volatility.
