Bitcoin's Illiquid Supply Soars to Record High
Bitcoin Illiquid Supply Reaches Record Levels
Bitcoin's illiquid supply, representing coins held by entities with a history of minimal spending, has surged to a new all-time high. According to Glassnode data, over 14.3 million BTC were classified as illiquid as of late August.
With approximately 19.9 million BTC currently in circulation, this means that roughly 72% of the total Bitcoin supply is now held in illiquid wallets. These wallets are typically associated with long-term holders and those utilizing cold storage solutions.
Accumulation Trend Remains Strong
Notably, this accumulation trend persisted even after Bitcoin experienced a price correction from its mid-August high of approximately $124,000. Despite an approximate 15% pullback, the illiquid supply continued its upward trajectory. In the last 30 days, the net change in illiquid supply shows an increase of 20,000 BTC, signaling strong long-term holder conviction.
Implications for Bitcoin's Price
- Tightening Supply: The continued rise in illiquid supply suggests a potential tightening of available Bitcoin, which could positively influence prices in the future.
- Long-Term Confidence: The trend reinforces the narrative of Bitcoin as a store of value and a long-term investment.
This dynamic highlights the growing confidence in Bitcoin as a long-term store of value. Should this trend continue, and market sentiment recover, it could provide a strong foundation for future price appreciation.