The cryptocurrency market has new developments! According to the latest report from 10x Research, the Bitcoin balance on cryptocurrency exchanges has fallen to a historic low, and on-chain data shows that the number of Bitcoins available for purchase is dramatically decreasing.😮

This stands in stark contrast to the trend at the end of summer when a large influx of Bitcoins temporarily replenished the reserves of exchanges. However, this time there has been no similar increase in inventory, which has exacerbated the supply tightening situation.

Analysts point out that Bitcoin and the broader cryptocurrency market are being driven by some favorable factors, indicating that growth may continue 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, which limits Bitcoin inflow into exchanges and reduces market liquidity.

Currently, only three major centralized exchanges (CEX), namely Bitfinex, Binance, and Coinbase, report having sufficient Bitcoin reserves to meet buyer demand. In contrast, smaller exchanges are facing increasing challenges in maintaining liquidity, which could lead to heightened price volatility.

For cryptocurrency enthusiasts, this is a moment worth paying attention to. Changes in the market may bring new investment opportunities, as well as challenges. What do you think about this phenomenon of supply tightening? Feel free to share your thoughts and insights in the comments! Let's explore this vibrant market together!