On December 2nd, 10x Research pointed out in a report released recently that bitcoin balances on cryptocurrency exchanges have reached an all-time low, and on-chain data shows a sharp decline in the number of bitcoins available for purchase. This contrasts sharply with the late summer trend, when sudden inflows temporarily replenished exchange reserves, the report said. However, this time there was no such build-up, exacerbating the supply crunch. Analysts say bitcoin and the broader cryptocurrency market are being driven by a favorable catalyst that bodes well for continued growth in the year ahead. On-chain analysis suggests that long-term holders, often seen as a stabilizing force in the market, are holding positions firmly, limiting bitcoin's flow into exchanges and reducing liquidity. It pointed out that only three major exchanges (Bitfinex, Binance, and Coinbase) currently report having enough bitcoin reserves to meet buyer demand. Smaller exchanges are facing increasing challenges in maintaining liquidity, which could lead to increased price volatility.