Bitcoin’s illiquid supply has surged to 14.37 million BTC, a notable increase from 13.9 million BTC at the beginning of the year, as reported by Glassnode. With the current circulating supply of Bitcoin at approximately 19.8 million, it shows that over 72% of all mined BTC is now categorized as illiquid.

Key Insights:

• The illiquid supply has increased by 470,000 BTC year to date.
• Only 5.4 million BTC is regarded as liquid, indicating investor sentiment toward Bitcoin as a long-term store of value.

Illiquid supply pertains to BTC held by entities with minimal spending behavior, including long-term holders and traditional offline wallets, essentially removing them from active trading. As such, the liquid portion diminishes, leading to tighter market conditions.

The increasing illiquid supply generally reflects greater investor confidence and the potential for supply-side shocks, which occur when rising demand meets restricted supply. Historically, such trends have been linked with price increases.

Overall, this data emphasizes liquidity analysis as a significant indicator of market sentiment and the probable direction of future price movements.