According to recent data from Glassnode, Bitcoin’s illiquid supply has reached an unprecedented level, surpassing 14.3 million BTC by late August. This significant milestone indicates that approximately 72% of the circulating supply—roughly 19.9 million BTC—is now held by entities with minimal history of spending. These entities include long-term holders and investors using cold storage solutions, pointing to a strong and ongoing accumulation trend amidst fluctuations in the broader market.
In mid-August, Bitcoin experienced a surge, reaching an all-time high of $124,000. However, shortly after, the cryptocurrency witnessed a pullback of about 15%. Despite this recent price correction, the illiquid supply has continued to rise, highlighting that many holders remain unfazed by temporary market downturns. In fact, over the past 30 days, there was a net increase of 20,000 BTC in the illiquid category, reflecting the unwavering conviction of investors in Bitcoin’s long-term potential.
This upward trend in illiquid supply points to tightening dynamics in Bitcoin’s availability, which could set the stage for renewed momentum should market sentiment improve. For the time being, the data indicates a growing confidence among investors who view Bitcoin as a reliable store of value in the long run. As the market navigates current challenges, these patterns suggest a readiness among certain Bitcoin holders to weather short-term volatility for long-term gains.
