Bitcoin's Path to $120,000 Faces Challenges Amid Decline in Illiquid Supply and Weak Buyer Dynamics

Sunday, Oct 26, 2025 9:58 am ET1min read

Bitcoin's price recovery may be hindered by a decline in illiquid supply, which is long-term holdings that rarely move. Approximately 62,000 BTC have moved out of inactive wallets since mid-October, increasing potential selling pressure. Historically, shrinking illiquid supply signals reduced conviction among long-term holders. Unless new inflows balance this movement, Bitcoin could face headwinds in maintaining its recovery.

Bitcoin's Path to $120,000 Faces Challenges Amid Decline in Illiquid Supply and Weak Buyer Dynamics