Analysis: Bitcoin balances on exchanges hit historic lows, with only three exchanges having enough reserves to meet buyer demand

10x Research pointed out in a report released recently that the Bitcoin balance on cryptocurrency exchanges has reached an all-time low, and on-chain data shows that the number of Bitcoins available for purchase has dropped sharply. The report said that this is in stark contrast to the trend in late summer, when sudden inflows temporarily replenished exchange reserves. However, this time there was no such increase in inventory, exacerbating the supply crunch. Analysts said that Bitcoin and the broader cryptocurrency market are driven by favorable catalysts, indicating that growth will continue in the coming year. On-chain analysis shows that long-term holders (often seen as a stabilizing force in the market) are firmly holding positions, limiting the flow of Bitcoin into 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 face increasing challenges in maintaining liquidity, which may lead to increased price volatility. (Decrypt)