Recent data shows Bitcoin's illiquid supply hitting a record of 14.3 million BTC, indicating a growing interest among long-term investors.
What is Bitcoin's Illiquid Supply
The illiquid supply of Bitcoin refers to the amount of Bitcoins held in wallets with little to no history of selling. Currently, 72% of the total circulating supply consists of this illiquid amount.
Market Impact
The rise of illiquid Bitcoin supply suggests that most investors are not looking to sell their assets anytime soon. This reduces the risk of large sell-offs and can help establish a more stable price floor.
Shifting Investor Sentiment
The data reflects a shift from short-term trading to long-term investing. This trend may signify growing interest from both retail and institutional investors in Bitcoin as a store of value.
The increase in Bitcoin's illiquid supply is a significant indicator of investor confidence and may impact future price fluctuations in the market.
