Bitcoin investors are turning the BTC supply more illiquid than at any point in its history
Data from onchain analytics platform Glassnode shows that Bitcoin’s “illiquid supply” has reached a record 14 million BTC.
Bitcoin illiquid supply returns to all-time highs
Bitcoin is increasingly finding its way into the hands of entities that do not sell what they acquire.
Glassnode, which charts the portion of the BTC supply owned by so-called “illiquid entities,” reveals that this has reached levels not seen during the current bull market.
An entity is considered illiquid if the ratio between its cumulative BTC inflows and outflows is below a certain value.
“This ratio yields a number L between zero and one, with larger values indicating higher liquidity,” it explained in a dedicated guide.
“Liquidity is therefore the extent to which an entity spends the assets it receives. Illiquid entities are those that hoard coins in anticipation of a long-term BTC price appreciation.”
