Bitcoin’s illiquid supply has hit an unprecedented milestone, reaching 14 million BTC, a figure that marks the largest 30-day increase seen in the current bull market. This surge underscores a growing trend of Bitcoin being tucked away by entities that appear to have no intention of selling anytime soon.
A New Era for Bitcoin’s Illiquid Supply
Glassnode, a prominent on-chain analytics firm, has revealed that Bitcoin’s illiquid supply has swelled to levels not seen throughout this bull market. The term “illiquid supply” refers to Bitcoin held by entities that are characterized by their minimal asset sales relative to their acquisition. In simpler terms, these are the hodlers—the steadfast believers banking on long-term appreciation.
The analytics firm describes an entity as illiquid if the ratio between its cumulative BTC inflows and outflows falls below a certain threshold. It’s a value that signifies how tightly Bitcoin is held, with a higher ratio indicating more liquidity. Currently, the illiquid supply stands at over 14 million BTC, with a significant 180,000 BTC added over the last month alone.
Whales Keep on Swimming
The persistent accumulation by Bitcoin whales—those holding between 10 and 10,000 BTC—has been notable. Data from Santiment, another research outfit, shows these heavyweight investors have added 83,105 BTC to their holdings in the past 30 days. This activity coincides with Bitcoin’s price resurgence to six-figure territory, a rebound that seems to cement its status as a formidable investment vehicle. As explored in our recent coverage of Bitcoin Surges Past $94,000 as Institutional Interest and Market Optimism Grow, the role of institutional players has been pivotal in this price movement.
However, while the big fish are on a buying spree, retail investors are singing a different tune. With market volatility and fear of missing out (FOMO) whispering in their ears, smaller holders appear more jittery, potentially rattled by the swift price movements that characterize this asset class.
Institutional Interest and Market Dynamics
Institutional interest remains a key driver of this bull cycle. Major players, such as corporate treasuries and the introduction of US spot Bitcoin exchange-traded funds (ETFs), have transformed Bitcoin into a mainstream financial asset. Michael Saylor’s MicroStrategy, for example, stands as a testament to corporate enthusiasm, having amassed a significant Bitcoin trove. This follows a pattern of institutional adoption, which we detailed in Bitcoin Surpasses $95K Amid Resilient U.S. Stocks, Analysts Voice Concerns Over Market Perception.
Yet, this institutional influx raises questions about Bitcoin’s future price trajectory. Will the accumulation by whales and institutions sustain the current momentum, or is a market correction looming on the horizon? Analysts are divided. Some argue that the groundwork for a prolonged bull market is solid, while others caution that the market could face headwinds if economic conditions shift.
Looking Forward
As Bitcoin’s illiquid supply continues to climb, the broader implications for the cryptocurrency market are profound. Should the trend persist, it could lead to reduced available supply, potentially driving prices higher. But there’s a flip side. If these entities decide to sell en masse, the market could face increased pressure.
The unfolding scenario paints a picture of a market at a crossroads—one that demands careful watching. As always, investors should tread carefully, armed with research and a strategic approach. The narrative of Bitcoin as a store of value seems stronger than ever, yet the market, ever unpredictable, keeps its cards close to the vest.
In the coming months, all eyes will be on how these dynamics play out. Whether Bitcoin will continue its upward march or face new challenges remains to be seen. One thing’s for sure: the world of crypto is never dull.
Source
This article is based on: Bitcoin illiquid supply hits 14M BTC as hodlers set bull market record
Further Reading
Deepen your understanding with these related articles:
- Strategy Raising Another $21B to Buy Bitcoin, Posts Large Q1 Loss on BTC Price Decline
- Strategy’s $84B Bitcoin Expansion Plan Backed by Wall Street Analysts
- Bitcoin Jumps Above $97K as Traders Optimistic U.S.-China Trade Deal Possible
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
