š° Bitcoin Illiquid Supply Hits All-Time High Above 14 Million BTC
A significant milestone has been reached on the Bitcoin chart: the Illiquid Supply has climbed to a new record level of over 14 million $BTC . This crucial metric indicates that more than 66% of the total circulating Bitcoin supply is held in wallets with very little history of sending coins out.
š Understanding the Trend:
Data tracking illiquid supply, often visualized alongside the BTC price, shows the volume of Bitcoin held in wallets where coins are rarely moved.
š Accumulation Strong Since 2023:
Since the beginning of 2023, the trend of accumulation has notably accelerated, demonstrating strong holder conviction despite market volatility.
š” What This Accumulation Means:
āļø "Frozen" Coins: It signals increasing confidence among long-term holders and investors who are holding onto their BTC.
š Moving Off Exchanges: A larger amount of BTC is being withdrawn from exchanges and potentially moved into secure cold storage.
š„ Supply Shock Potential: With a significant portion of supply becoming illiquid, even modest increases in demand can lead to considerable price surges due to reduced selling pressure.
š Historical Context:
Previous peaks in illiquid supply have historically preceded significant Bitcoin price rallies, notably in 2020 and early 2021.
Conversely, a sharp decline in this metric during 2022 coincided with the onset of the "crypto winter."
The current upward trend underscores that the market is firmly back in a phase of accumulation and long-term holding by a large segment of participants.
