Bitcoin's Illiquid Supply Has Jumped to a New High of 14 Million BTC

Bitcoin's illiquid supply has jumped to a new high of 14 million BTC. Due to this, prices are going up more, and people are moving their coins into wallets that rarely sell.

Bitcoin’s illiquid supply has hit a new high, reaching 14 million BTC. This surge in illiquid holdings, which are essentially coins that are largely locked away and rarely move, is pushing prices up further and causing many to move their coins into wallets from which they rarely sell.

The data from Glassnode shows that Bitcoin’s illiquid supply has reached its highest point since December 2022, with 14 million BTC now largely illiquid. Illiquid supply is essentially any token that isn’t actively traded or used for trade. It’s usually coins that are held long-term by investors who aren’t engaging in frequent trades.

As demand increases and the circulating supply gets lower, it puts more pressure on the token and causes its price to move higher. The increase in illiquid holdings also shows growing confidence among holders who are choosing to store rather than sell their BTC.

As the chart shows, most of these whale holding wallets belong to users or groups that keep what they buy, even during market changes. Over the past month, about 180,000 BTC were added to this category, which is the biggest growth since late 2022. Back then, prices were much lower and the market was still recovering. Now, the steady increase in stored BTC can tell how well investors trust Bitcoin’s long-term strength.

Small investors, however, tend to react more quickly to price drops than whales, often choosing to sell when prices fall. This difference in strategy just shows how much trust wealthy individuals and institutions have in Bitcoin’s future growth. While some panic during drops, these bigger players continue to hold, believing the price will keep rising and even get to the seven-figure mark.