Definition ∞ Supply shock confirmed signifies a definitive and substantial reduction in the available supply of an asset within the market. This condition typically results from unforeseen events, strong holding sentiment, or significant withdrawals from liquid venues. It implies a significant imbalance between supply and demand.
Context ∞ In cryptocurrency markets, a confirmed supply shock often arises when on-chain data or exchange reserves show a substantial decrease in liquid assets. This event can precede periods of significant price appreciation due to increased demand against a limited supply. Market analysts closely monitor these indicators for potential price movements.
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