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

Odaily Planet Daily Report: According to a recent report by 10x Research, the Bitcoin balance of cryptocurrency exchanges has reached a historical low, and on-chain data shows that the available Bitcoin supply has dropped sharply. The report states that this is in stark contrast to the trend in late summer, when a sudden influx temporarily replenished the exchanges' reserves. However, this time there has been no such inventory increase, exacerbating the supply shortage. Analysts say that Bitcoin and the broader cryptocurrency market are being driven by favorable catalysts, suggesting continued growth in the coming 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 increased price volatility. (Decrypt)