Bitcoin's Illiquid Supply Soars to 72%: A Bullish Signal for Price
Bitcoin's illiquid supply has recently surged to a new peak of 14.3 million BTC, now representing over 72% of its total circulating supply. This significant milestone underscores a strong bullish sentiment within the crypto market, as a large portion of the digital asset is being held off exchanges by long-term investors, signaling reduced selling pressure and potential for future price appreciation.
Rising Illiquid Supply and Strong Holder Conviction
According to data from Glassnode, this impressive accumulation reflects the strong conviction of long-term holders (LTHs), who have not moved their coins in over seven years. Such sustained holding patterns indicate a belief in Bitcoin's long-term value, effectively reducing the available supply for trading. Asset manager Fidelity echoed this sentiment in a research report, highlighting that this growing demand, coupled with Bitcoin's fixed supply and decreasing issuance schedule, was a key factor behind the cryptocurrency's rally to a new all-time high above $124,000. Fidelity anticipates this upward trend to continue in the coming years.
Scarcity as Bitcoin's Core Strength
Fidelity further predicts that Bitcoin's inherent scarcity will become its defining characteristic as more entities, including potential nation-states, begin to acquire and hold BTC for extended periods. This growing adoption, especially by institutional and governmental bodies, could trigger a massive supply shock, where demand far outstrips the available supply, propelling prices even higher. While the possibility of long-term holders realizing gains exists, recent data also shows large amounts of "ancient Bitcoin" (80,000 BTC) were sold in July 2025, suggesting some profit-taking is occurring. Despite this, Bitcoin's illiquid supply has historically only decreased quarter-over-quarter once, emphasizing the persistent trend of accumulation. At the time of writing, Bitcoin is trading around $115,600, reflecting recent market movements.
