Analysis: The Bitcoin balance on exchanges has reached a historical low, with only three exchanges having reserves sufficient to meet buyer demand

ChainCatcher news, according to Decrypt, 10x Research pointed out in a recent report that the Bitcoin balance on cryptocurrency exchanges has 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 stands in stark contrast to 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 seen 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.