Bitcoin balances on crypto exchanges have reached historic lows, as on-chain data points to a rapid depletion of available inventory. 

A recent note from 10X Research on Sunday highlighted the trend, underscored by a sharp drop in the amount of Bitcoin available to buy.

It contrasts sharply with trends observed in late summer when a sudden inflow temporarily replenished exchange reserves, according to the report.

This time, however, no such inventory boost has occurred, exacerbating the supply crunch. 

Bitcoin and the broader crypto market have been bolstered by favorable catalysts that point to continual growth in the coming year, analysts say.

President-elect Donald Trump has vowed to establish a Bitcoin reserve in the U.S. while protecting crypto mining interests and crafting favorable industry policy.

That has helped drive Bitcoin’s price to record highs just below $100,000 and has revamped the asset’s image as a store of value in the eyes of investors.

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Author: Sebastian Sinclair