Large Bitcoin holders remain reluctant to spend their digital assets despite uncertain markets, geopolitical issues, and uncertain global economic conditions. Glassnode’s weekly On-chain Analysis Report shows that the illiquid Bitcoin Supply, which is a measure that measures the amount of bitcoins held in wallets that have little to no history of spending, has risen to its highest level in almost 10 months.
Nearly 76.3% (compared to 76% of the circulating BTC supply) is illiquid. Over the past few months, long-term Bitcoin holders have continued to accumulate the cryptocurrency asset steadily. The accumulation of top BTC addresses with more than 100,000 coins has increased over the past month. Their cumulative holdings now exceed 664,000 BTC.
Illiquid Supply, as a percentage of circulating supply has now exceeded the May 2021 peak and is at 76.3%. This is now at the same level of the 2017 market peak, which reverses a four-year-long increase coin wallet liquidity. Glassnode noted that these two instances occurred before major sell-off events. Therefore, it remains to be determined if the coins are in cold storage.
Price Recovery for Bitcoin
The recent price rebound in Bitcoin has had a positive effect on the overall network activity. Glassnode stated that BTC’s recent price surge has led to a sharp rise in its profit supply. The recent price boom has caused BTC’s profit supply to jump from 65% to 75%, according to the data provider.
BTC exchange supply, which is an indicator of the on-chain flow trend for Bitcoin, has been in a downward trend for the last 3 months.
“We also saw a steady decline in investors depositing to exchanges. This fell from 74k/day to the Nov ATH to 41k/day. The report mentions that exchange withdrawals have remained steady at 40k to 48k/day. This is indicative of a pool of HODLers who withdraw rain, hail, or shine.
