Glassnode data reveals a significant surge in Bitcoin's (BTC) illiquid supply, climbing from 13.9 million BTC in early 2025 to 14.37 million BTC. This trend underscores a growing preference among investors to HODL (hold long-term) rather than trade, signaling heightened confidence in Bitcoin as a store of value.
Key Insights:
- 72% of mined Bitcoin (14.37M BTC) is now classified as illiquid.
- Liquid supply stands at just 5.4M BTC, tightening market availability.
- Year-to-date increase: +470K BTC added to illiquid holdings.
👉 Why Illiquid Supply Matters for Bitcoin’s Price
What Is Illiquid Supply?
Illiquid Bitcoin refers to coins held by entities with minimal spending activity, such as:
- Long-term investors
- Cold wallet holders
These coins are effectively removed from the market, reducing tradable supply and increasing scarcity.
Market Implications
Supply Shock Potential:
- Shrinking liquid supply + rising demand = upward price pressure.
- Historical precedent: Illiquid phases often precede bullish runs.
Investor Sentiment:
- Reflects trust in Bitcoin’s long-term value proposition.
- Aligns with narratives of Bitcoin as "digital gold."
Reduced Miner Influence:
- Newly mined BTC (900/day) is dwarfed by illiquid holdings.
FAQs
Q: How is illiquid supply calculated?
A: Glassnode tracks wallets with infrequent transactions and large balances (>10 BTC unmoved for 3+ years).
Q: Does illiquid supply guarantee price increases?
A: Not directly, but scarcity + demand historically correlate with upward trends.
Q: What risks could reverse this trend?
A: Large-scale wallet liquidations or macroeconomic shifts weakening crypto adoption.
Conclusion
The rise in illiquid supply highlights Bitcoin’s maturation as a HODLer-dominated asset. With 14.37M BTC now sidelined, the stage is set for intensified supply-demand dynamics—potentially fueling future price gains.