The post Bitcoin Supply Dwindles on Exchanges as Long-Term Holders Retain Positions and Demand Grows appeared on BitcoinEthereumNews.com.

As long-term Bitcoin holders continue to retain their assets amidst a tightening supply, the cryptocurrency market faces significant liquidity challenges. This ongoing trend, underscored by a major report from 10X Research, shows a stark decrease in Bitcoin available on exchanges, emphasizing a growing scarcity. According to 10X Research, “The current depletion of Bitcoin reserves on major exchanges indicates a critical turning point in market dynamics.” This article discusses the current scarcity of Bitcoin on exchanges, driven by long-term holders, and the potential implications for future market dynamics. Long-term Holder Sentiment Limiting Bitcoin Supply on Exchanges The latest data indicates that long-term holders of Bitcoin are significantly affecting market liquidity. A noted trend is the drop in Bitcoin balances on exchanges, which have reached unprecedented lows. On-chain analytics show that these long-term investors are not selling their assets, contrary to market expectations. Shift in Market Dynamics: Analyzing the Supply Issue With the current landscape characterized by a drastic reduction in the cryptocurrency supply available for trading, the market is witnessing new price tensions. The recent report from 10X Research highlights that there has been a sharp decline in Bitcoin available to purchase on major exchanges, looking particularly at platforms like Bitfinex, Binance, and Coinbase, which are among the few with sufficient reserves to meet demand. Impact of Political Developments on Bitcoin’s Price Trajectory Additionally, recent political statements, notably from President-elect Donald Trump regarding the establishment of a Bitcoin reserve, contribute to the asset’s growing allure. This potential policy support enhances Bitcoin’s standing as a reliable store of value, creating a favorable environment for future growth. As a result, analysts are optimistic that such developments could propel Bitcoin above the $100,000 mark, a milestone it is on the verge of reaching. The Importance of Exchange Liquidity in Market Stability As exchanges face…

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Filed under: News - @ December 2, 2024 2:05 am