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CryptoIntelligence 2025-05-13 19:09:06

Bitcoin’s Illiquid Supply Surges Above 14mn BTC, Marking Fresh Bull-Market Record

Bitcoin’s illiquid supply has climbed to an unprecedented 14 million BTC, underscoring powerful accumulation trends as the 2025 bull market matures. The latest Glassnode figures show a 30-day jump of roughly 180,000 BTC, the sharpest increase since late 2022. Long-term investors are moving coins off exchanges into wallets that historically refrain from spending, reducing the freely tradable float. How Glassnode Defines “Illiquid” Illiquid entities are wallets whose cumulative inflows far exceed outflows, signaling a preference to hoard rather than trade. “This ratio yields a number L between zero and one, with larger values indicating higher liquidity,” the firm explained. “Liquidity is therefore the extent to which an entity spends the assets it receives. Illiquid entities are those that hoard coins in anticipation of a long-term BTC price appreciation.” Context of the 2025 Rally The metric’s new high arrives as BTC hovers near six-figure territory after doubling year-to-date. Yet supply constraints appear to be tightening faster than price is rising, suggesting demand is outpacing new issuance. Analysts view the pattern as a powerful tailwind, noting that spot Bitcoin ETF inflows and corporate treasury purchases are absorbing freshly mined coins almost as quickly as they appear. Whales Keep Buying Above $100K On-chain data also highlights aggressive accumulation by so-called whale and shark addresses holding 10–10,000 BTC. “Bitcoin’s key whale & shark tier (holding 10-10K BTC) have now accumulated 83,105 more BTC in the past 30 days,” research firm Santiment reported. “Meanwhile, the smallest retail holders (holding less than 0.1 BTC) have dumped 387 BTC in the same time period. For both tiers, these are significant movements relative to how much they hold in total.” Historical Comparison Previously, the illiquid-supply record of 14.95 million BTC was set in November 2023 as markets clawed back from the post-FTX bear low. Today’s resurgence suggests experienced market participants remain determined not to sell into strength. At the same time, speculative short-term holders have thinned out, reducing the likelihood of abrupt supply shocks from panic selling. Pressure on Exchange Reserves Rising illiquidity is mirrored by shrinking balances on major trading venues, where combined reserves have fallen to multi-year lows. The squeeze leaves fewer coins available for margin traders or new buyers, intensifying competition each time momentum accelerates. Glassnode analysts warn that price discovery can turn “disorderly” when illiquid supply dominates and fresh demand persists. Institutional Influence Grows Corporate treasuries and United States spot Bitcoin ETFs continue to mop up circulating stock, adding a structural layer of demand absent in prior cycles. Observers note that ETF inflows alone have periodically exceeded daily miner issuance, effectively hard-forking the supply schedule through market forces. With another block-subsidy halving due in 2028, some strategists argue that a long-term supply “cliff” is forming earlier than many models projected. Outlook for the Remainder of 2025 Bulls contend that so long as the illiquid-supply curve points upward, any pullbacks will be shallow and short-lived. Bears counter that macro-economic shocks, such as renewed rate hikes, could still jolt dormant holders into distribution mode. For now, however, the data tilt unmistakably toward continued hoarding—and the market is watching to see how high price must go before these steadfast investors feel compelled to sell.

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