Bitcoin balances on exchanges are shrinking rapidly

Markus Thielen reports a sharp decline in Bitcoin balances on cryptocurrency exchanges. Unlike August, when there was an influx of Bitcoin into exchanges, the situation is now the opposite.

Key points:

* Only three exchanges (Bitfinex, Binance, and Coinbase) have enough Bitcoin reserves to meet demand.

* Taking into account the influx of liquidity into spot Bitcoin ETFs, Bitfinex's reserves will last no more than a year, and the rest of the exchanges have even less.

* The supply deficit of Bitcoin will increase, which may lead to an increase in its price.

Additional information:

* CryptoQuant analysts note the stabilization of the Bitcoin exchange rate.

* For Bitcoin to grow further, demand for the asset must increase.

Conclusion: The reduction in Bitcoin balances on exchanges may signal a future deficit and an increase in the price of the cryptocurrency. $BTC