Nearly 78% of the total circulating supply ofBTC is illiquid as investors have been pulling their digital assets away from exchanges and storing them in custodial wallets to avoid selling them.
According to Glassnode on-chain data analyzed byCryptoslate, only 22% of all the minedBitcoin is being exchanged and moved around. Since the collapse of FTX FTT USD in 2022, the price of virtual currency has been trading downward for nearly the entire 2022 period.
If a wallet shows no spending history, BTC moves to a wallet that has a history of spending, the point of illiquidity is when it moves to a wallet that shows no history of spending, according to the researchers of Cryptoslate.
Glassnode data shows that there is a high level of accumulation and holding, which means that less Bitcoin is available for trading. The decrease in liquid supply is an indication that major sell-offs and capitulations are subsiding.
Of the 15 million Bitcoins that are not available for purchase, 4.3 million are in constant circulation. A large portion of these coins are held by short-term investors or traders. The short-term holders have lost to long-term holders because of the positioning of the supply shock at the same level as when it was valued at $53,000.
Price Action: In the past 24 hours, BTC was trading at $16,960, down 0.81%.
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