Bitcoin's Illiquid Supply Hits 14 Million BTC, Whales Accumulate 83,105 BTC

Bitcoin's illiquid supply has reached a new all-time high of 14 million BTC, according to data from Glassnode. This indicates that a significant portion of Bitcoin is being held by entities that are not actively selling their assets, suggesting a strong hodling sentiment among investors.

The illiquid supply of Bitcoin, which refers to the amount of BTC held by entities with a cumulative inflow-to-outflow ratio below a specific threshold, has seen a notable increase. Over the past 30 days, the illiquid supply has grown by 180,000 BTC, marking the largest increase since December 2022. This surge in illiquid supply coincides with a period of price recovery for Bitcoin, which has seen its value rebound after a period of volatility.

On-chain data reveals that Bitcoin whales, particularly those holding between 10,000 and 100,000 BTC, have been actively accumulating more Bitcoin. In the past 30 days, this key whale cohort has added an additional 83,105 BTC to their holdings. This accumulation by whales suggests a strategic move to capitalize on the current market conditions and potentially drive further price appreciation.

In contrast, retail investors appear to be more cautious, with some showing signs of panic. This divergence in behavior between whales and retail investors highlights the differing strategies and risk appetites within the Bitcoin market. Whales, with their substantial holdings, are likely to have a more significant impact on market dynamics compared to retail investors.

The increase in illiquid supply and the accumulation by whales indicate a growing confidence in Bitcoin's long-term value. As more Bitcoin flows into the hands of holders who are not selling, it reduces the overall supply available for trading, which could potentially drive up the price. This trend is particularly notable given the recent price rebound, suggesting that investors are optimistic about Bitcoin's future prospects.

Overall, the data points to a market where hodling activity is at an all-time high, and whales are playing a crucial role in shaping the supply dynamics. As Bitcoin continues to gain traction as a store of value, the behavior of these large holders will be closely watched by market participants. The current trend of increasing illiquid supply and whale accumulation bodes well for Bitcoin's price outlook, as it indicates a strong underlying demand and a reduced supply available for trading.