Bitcoin Illiquid Supply Hits Record 14 Million BTC

Bitcoin’s illiquid supply has reached a historic 14 million BTC, representing 71% of its total supply.

Increasing illiquid supply suggests a market trend towards holding, which could drive future price increases.

Bitcoin’s Illiquid Supply Reaches Historic 14 Million BTC

The illiquid supply of Bitcoin has reached record levels, according to recent data from Glassnode and CryptoRank. The supply now stands at 14 million BTC, marking a pivotal moment in the cryptocurrency’s lifecycle.

Glassnode data indicates that this supply represents 71% of Bitcoin’s total, showcasing Bitcoin’s increasing trend towards being held rather than traded. CryptoRank’s analysis supports these findings with a positive price-supply correlation.

Potential Supply Squeeze Drives Institutional Interest

The climb in illiquid supply is causing a potential supply squeeze, influencing prices and market dynamics. This trend has led to increased institutional interest, as evidenced by whale wallet behaviors.

Market responses have shown a strong institutional accumulation, with whale wallets amassing over 83,000 BTC recently. This impacts supply-demand dynamics, contributing to Bitcoin’s price fluctuation prospects.

Illiquid Growth Mirrors Pre-2020 Bull Market Patterns

The current supply growth mirrors the pattern seen before the 2020 bull market. Past cycles suggest a correlation between illiquid supply increases and price surges. As noted by CryptoRank, “There is a clear positive correlation between illiquid supply growth and Bitcoin prices since 2019.”

Experts note that while past patterns are not definitive, historical trends indicate potential for another price rally. Continued accumulation trends may lead to significant future market impacts.