Analysis: Bitcoin Exchange Balances Hit Historic Low, Only Three Exchanges Have Adequate Reserves

A recent report highlights that the Bitcoin balances on cryptocurrency exchanges have reached an all-time low, with on-chain data showing a sharp decline in the availability of Bitcoin for purchase.

This trend marks a stark contrast to the surge seen late last summer, when sudden inflows temporarily replenished exchange reserves. However, no such replenishment has occurred this time, exacerbating the supply crunch.

Analysts suggest that Bitcoin and the broader cryptocurrency market are being driven by favorable catalysts, signaling continued growth in the coming year. On-chain data indicates that long-term holders—often viewed as the market’s stabilizing force—are resolutely maintaining their positions. This behavior has limited Bitcoin inflows to exchanges, further reducing liquidity.

The report also notes that currently, only three major exchanges—Bitfinex, Binance, and Coinbase—report having sufficient Bitcoin reserves to meet buyer demand. Smaller exchanges are facing mounting challenges in maintaining liquidity, which could lead to increased price volatility in the market.