Exchange Outflows Could Tighten Liquidity — Watch, Don’t Rush
I’ve heard the same rumors about exchanges showing lower on-exchange balances for BTC, ETH, SOL and XRP, and I’m cautious about taking that at face value without checking the data.
Lower exchange balances can reflect real flows (withdrawals to cold storage, staking, or DeFi) and can reduce available spot liquidity, which may amplify price moves — but the magnitude depends on demand, order-book depth, and derivatives positioning.
I’d verify on-chain exchange balance charts, exchange-specific order-book depth, stablecoin inflows, and funding rates before acting; until then I’m watching the situation rather than buying aggressively.
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