Definition ∞ An Available Supply Crash refers to a rapid and substantial decrease in the quantity of a digital asset readily accessible for trading on public exchanges. This reduction signifies that fewer units of the asset are circulating freely in the market. Such an event can result from large-scale asset locking, burning mechanisms, or significant withdrawals into cold storage.
Context ∞ News reports frequently highlight available supply crashes as indicators of potential market shifts, often correlating with increased price volatility. The immediate situation typically involves a tightening of market liquidity, which can amplify price movements if buying pressure persists. Observing these events helps analysts assess long-term holder sentiment and predict supply-side driven market reactions.
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