Key Takeaways
- 74% of Bitcoin’s circulating supply is now classified as illiquid.
- 14.61 million BTC is held by entities that rarely sell.
- ETC Group says the Bitcoin halving is increasing supply scarcity.
The amount of Bitcoin classified as illiquid has risen to 74% of its total circulating supply, according to data from ETC Group and Glassnode.
This marks a new record, as 14.61 million BTC—worth over $826 million—are now held by entities with minimal selling activity.
Illiquid entities
Illiquid entities are defined by Glassnode based on the ratio of cumulative inflows and outflows throughout their history, meaning they hold more Bitcoin than they release.
The increase in illiquid Bitcoin suggests a tightening supply in the market, which could lead to price increases if demand rises.
André Dragosch
André Dragosch, head of research at ETC Group, noted:
Bitcoin’s illiquid supply reached a new all-time high… signaling that the Halving-induced supply shock is actually intensifying.
The Bitcoin halving, which reduces the rate of new supply entering the market, is a key event that can drive such scarcity.
Currently, Bitcoin is trading at $56,600, down from its peak above $70,000 earlier this year. However, the record illiquid supply could act as a bullish force, particularly if market demand increases in the coming months, according to CoinDesk.
