Bitcoin’s illiquid supply hits all-time high; accounts for roughly 78% of circulating supply

Bitcoin’s illiquid supply has reached an all-time high, accounting for approximately 78% of the cryptocurrency’s circulating supply. This means that a significant amount of Bitcoin is being held by long-term HODLers who have no intention of selling in the near future, leading to a shortage of available coins for those looking to purchase. As a result, Bitcoin’s price could potentially be driven up as demand continues to exceed supply.

Bitcoin’s Illiquid Supply Reaches a New All-Time High

Bitcoin’s illiquid supply has recently reached a new all-time high of 15.056 million, accounting for approximately 78% of the circulating supply. This means that the amount of Bitcoin that is not available for trading has increased significantly in recent months. It is interesting to analyze HODL waves, which examine the supply bands holding Bitcoin.

Analyzing the cohort of short-term holders, who have held Bitcoin for under six months, reveals that they are holding over 20% of the supply. This indicates that there has been a recent jump in their supply. It is expected that the illiquid supply will continue to increase, as this cohort bought Bitcoin in Q4 2022 and Q1 2023 and will hopefully turn into long-term holders.

The HODL waves chart shows the different age bands of Bitcoin’s supply. The chart highlights the amount of Bitcoin held by long-term holders who do not intend to sell their holdings. The data shows that there has been a significant increase in long-term holders since 2017, demonstrating a strong belief in the potential value and future of Bitcoin.

The increase in Bitcoin’s illiquid supply is a positive sign for the overall market. It suggests that more investors are taking a long-term approach to holding the cryptocurrency. Additionally, this increase in illiquid supply could lead to a decrease in Bitcoin’s price volatility as there will be fewer coins available for trading.

In conclusion, Bitcoin’s illiquid supply has reached a new all-time high, accounting for approximately 78% of the circulating supply. The increase in illiquid supply is a positive sign for the overall market, indicating that more investors are taking a long-term approach to holding the cryptocurrency. This could lead to a decrease in price volatility, making Bitcoin a more stable investment option.

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