Bitcoin's Illiquid Supply Hits 14 Million BTC, Up 180,000 in 30 Days

Bitcoin's illiquid supply has reached a new milestone, hitting 14 million BTC, the highest level ever recorded. This significant increase in illiquid supply indicates that a growing number of investors are holding onto their Bitcoin rather than selling it, a trend that has been particularly pronounced during the current bull market.

Data from onchain analytics platform Glassnode reveals that the illiquid supply of Bitcoin has surged to an all-time high of 14 million BTC. This metric measures the portion of the Bitcoin supply that is held by entities that do not sell what they acquire, suggesting a strong belief in the long-term appreciation of Bitcoin's price. An entity is classified as illiquid if the ratio between its cumulative BTC inflows and outflows is below a certain threshold, indicating that these entities are hoarding coins rather than spending them.

The 30-day rolling increase in illiquid supply reached 180,000 BTC, marking the largest jump since December 2022. This period coincided with the end of the previous bear market, during which BTC/USD declined by 77% to hit long-term lows of just above $15,000. The current bull market has seen a notable increase in institutional participation, with corporate treasuries and spot Bitcoin exchange-traded funds (ETFs) contributing to Bitcoin's mainstream acceptance as an investment asset.

Onchain data further supports this trend, showing that Bitcoin whales—entities holding between 10 and 10,000 BTC—have accumulated 83,105 more BTC in the past 30 days. This accumulation by whales contrasts with the behavior of retail investors, who appear to be more panicked. The significant accumulation by whales suggests a strong conviction in Bitcoin's future price appreciation, further bolstering the illiquid supply.

This trend of increasing illiquid supply and whale accumulation indicates a bullish sentiment among long-term Bitcoin holders. As more entities choose to hold onto their Bitcoin rather than sell, the overall supply available for trading decreases, potentially driving up the price. The current bull market's unique characteristics, including increased institutional participation and whale accumulation, contribute to the record levels of illiquid supply, signaling a strong belief in Bitcoin's long-term value.