Bitcoin

James

Bitcoin’s (BTC) liquid supply is shrinking as more coins are being stowed away in what’s known as ‘illiquid wallets’. These are wallets controlled by entities with minimal spending history, suggesting a trend of accumulation by long-term investors. 
Over the past month, a whopping 147,351.58 <a href="https://crypto.ro/en/cryptocurrencies/bitcoin">BTC</a> ($3.9 billion) became illiquid, the highest since December of the previous year. The total Bitcoin held by illiquid entities has soared to a record 15,207,843 BTC. 
Recent data from <a href="https://glassnode.com" rel="nofollow noopener" target="_blank">Glassnode</a>, a blockchain analytics firm, indicates a noticeable downward trend in the highly liquid supply, currently near a cycle low of 2.94M BTC, a decrease of 620K BTC since January 2022​. 
<figure id="attachment_22169" aria-describedby="caption-attachment-22169" style="width: 100%" class="wp-caption alignnone">
 <img decoding="async" class="wp-image-22169 size-full" src="https://crypto.ro/en/wp-content/uploads/2023/06/The-monthly-30-day-net-change-of-supply-held-by-illiquid-entities-has-jumped-to-highest-since-December.png" alt="The monthly 30 day net change of supply held by illiquid entities has jumped to highest since December" width="2400" height="1252" srcset="https://crypto.ro/en/wp-content/uploads/2023/06/The-monthly-30-day-net-change-of-supply-held-by-illiquid-entities-has-jumped-to-highest-since-December.png 1200w, https://crypto.ro/en/wp-content/uploads/2023/06/The-monthly-30-day-net-change-of-supply-held-by-illiquid-entities-has-jumped-to-highest-since-December-300x157.png 300w, https://crypto.ro/en/wp-content/uploads/2023/06/The-monthly-30-day-net-change-of-supply-held-by-illiquid-entities-has-jumped-to-highest-since-December-1024x534.png 1024w, https://crypto.ro/en/wp-content/uploads/2023/06/The-monthly-30-day-net-change-of-supply-held-by-illiquid-entities-has-jumped-to-highest-since-December-768x401.png 768w, https://crypto.ro/en/wp-content/uploads/2023/06/The-monthly-30-day-net-change-of-supply-held-by-illiquid-entities-has-jumped-to-highest-since-December-750x391.png 750w, https://crypto.ro/en/wp-content/uploads/2023/06/The-monthly-30-day-net-change-of-supply-held-by-illiquid-entities-has-jumped-to-highest-since-December-1140x595.png 1140w" sizes="(max-width: 2400px) 100vw, 2400px" title="Bitcoin's illiquid supply hits 15.2M BTC record high 1">
 <figcaption id="caption-attachment-22169" class="wp-caption-text">
 The monthly (30-day) net change of supply held by illiquid entities has jumped to highest since December | Glassnode
 </figcaption>
</figure> 
This escalating trend of illiquidity suggests a contraction in the actively tradable supply of Bitcoin, resulting in both a decline in liquidity and a constrained supply side​​. Despite the ongoing macroeconomic uncertainty and increased regulatory risks, investors remain confident about Bitcoin’s price prospects. 
Interestingly, this increasing illiquidity is not a sign of investor fear or uncertainty. On the contrary, it signals a steady and gradual accumulation of <a href="https://crypto.ro/en/bitcoin/">BTC</a>. This holds true even as the market grapples with continued macroeconomic uncertainty and increased regulatory risks, such as lawsuits filed by the U.S. Securities and Exchange Commission (<a href="https://crypto.ro/en/news/bitcoin-rises-amidst-sec-lawsuits-targeting-coinbase-and-binance/">SEC) against digital asset exchanges Coinbase and Binance</a>​. 
<blockquote>
 “Overall, the market appears to be in a period of quiet accumulation, which suggests an undercurrent of demand, despite the regulatory headwinds of late.”, James Check, an analyst at Glassnode, noted in a recent report.
</blockquote> 
This decline in liquidity, coupled with a constrained supply side, underscores the growing demand for Bitcoin amid a landscape that is seeing an increasing rotation of money out of altcoins and into the leading cryptocurrency by market value​. 
This trend mirrors patterns seen after <a href="https://crypto.ro/en/news/suspected-terra-luna-co-founder-do-kwon-arrested-in-montenegro/">Luna’s collapse</a> and signifies a significant contraction in the actively tradeable supply of Bitcoin​. 
The undercurrent of quiet accumulation shows that, despite external factors, the faith in Bitcoin’s long-term value proposition remains strong among investors.

Bitcoin’s illiquid supply hits 15.2M BTC record high

crypto.ro global

Other articles published on Jun 21, 2023

How to Add SCS Chain Testnet and Withdraw TSCS Tokens

Ticketmaster secures USPTO web3 trademark for online marketplace

Singapore takes the lead in establishing norms for ‘designated’ digital currency

Polygon Proposes Ambitious Upgrade: Lower Fees and Increased Security

Shiba Inu (SHIB) Faces First Major Resistance: 3 New Targets

Tether (USDT) set to go live on the Kava blockchain

Join our free newsletter for daily crypto updates!