Bitcoin Illiquid Supply Hits Record 14.3M as Long-Term Holders Continue to Accumulate

Bitcoin’s illiquid supply has reached a new milestone, exceeding 14.3 million BTC by the end of August, according to data from Glassnode. This represents over 72% of the total Bitcoin supply, which currently stands at 19.9 million BTC. The illiquid supply consists of coins held by entities who have a history of holding onto their assets rather than frequently trading or spending them. These entities include long-term holders and investors who store their Bitcoin in cold storage.

Despite recent market volatility, with Bitcoin reaching an all-time high of $124,000 in mid-August before experiencing a 15% pullback, the trend of increasing illiquid supply has remained consistent. This indicates that holders are maintaining their conviction in the long-term value of Bitcoin, even in the face of short-term price fluctuations.

In the past 30 days alone, the net change in illiquid supply has grown by 20,000 BTC, demonstrating ongoing accumulation by long-term investors. This accumulation trend suggests that supply dynamics are tightening, which could potentially lead to a resurgence in price momentum once market sentiment improves.

The growing confidence in Bitcoin as a store of value is reflected in the increasing illiquid supply, with more investors opting to hold onto their coins rather than trade them actively. This trend bodes well for Bitcoin’s future price performance and reinforces its status as a preferred asset for long-term investment.

Overall, the rise in Bitcoin’s illiquid supply underscores the strong belief among investors in the cryptocurrency’s potential for long-term value appreciation. As more coins are held in illiquid wallets, Bitcoin’s scarcity and value proposition are likely to become even more pronounced, setting the stage for continued growth in the digital asset’s market value.