Bitcoin $BTC is entering one of the most significant phases in its history. Fresh data from CoinDesk shows that 14.3 million BTC are now locked away by long-term holders, effectively removed from circulation and hitting a new all-time high.
BTC
111,962.34
+0.76%
This isnāt just another milestoneāit represents a structural change in how Bitcoin is used and understood. What started as the meme-worthy āHODLā strategy has now evolved into the dominant market behavior, overtaking short-term trading.
š Illiquid Supply Explained
āIlliquidā Bitcoin refers to coins stored by holders who have no plans to sell anytime soon. These are typically in cold storage or untouched wallets for months or even years. With over 70% of BTCās circulating supply now illiquid, the available market supply is shrinking at record speed.
š Why Are Holders Locking Up BTC?
Confidence in the Long Game ā More investors see Bitcoin $BTC as a reliable long-term store of value, especially during global economic uncertainty.
Digital Scarcity Effect ā With a hard cap of 21M BTC, locking up 14.3M creates a powerful supply squeeze. Less availability means higher sensitivity to demand.
Institutional Adoption ā Corporates, funds, and even governments are stacking Bitcoin as a strategic reserve asset, tightening supply even further.
As one analyst explained:
āWhen supply becomes this illiquid, even a modest wave of demand could cause explosive price moves.ā
š Whatās Next for Bitcoin?
If this pace continues, tradable BTC could fall below 4M in the near future. With so little circulating, new demand from spot ETFs or corporate treasuries might create outsized market reactions.
This sets up an asymmetric risk-reward profile:
Upside ā massive appreciation potential.
Downside ā sharper price swings due to thin liquidity.
š§ My View: Bitcoin Is Evolving Into a Reserve Asset
Bitcoin is no longer just a speculative playāitās becoming a global reserve-like asset for individuals, institutions, and even nations. Holders are locking coins away with decades in mind, not just months.
But hereās the paradox:
The more Bitcoin is locked away, the stronger its fundamentalsābut the more violent price movements could become when demand spikes.
In short: Bitcoin is maturing, but volatility isnāt going anywhere.
XRP: 2.9307 (+3.51%)
BNB: (latest updates pending)
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