Bitcoin’s illiquid supply — coins held by addresses with little history of spending — climbed to a fresh high of 14.3 million BTC in late August, according to on-chain data. That figure represents roughly 72% of the circulating supply (about 19.9 million BTC), underscoring continued accumulation even after a recent price wobble.
The price backdrop: bitcoin hit an all-time high near $124,000 in mid‑August and subsequently pulled back roughly 15%. Despite that retreat, the category labeled “illiquid supply” kept expanding — a sign that many holders are choosing to lock coins away in cold storage or otherwise refrain from selling. Over the past 30 days the net illiquid supply rose by around 20,000 BTC, highlighting sustained investor conviction.
What is “illiquid supply”? It’s a measure of coins that are unlikely to move in the short term — typically long-term holders, cold wallets, and addresses showing minimal spending history. Because these coins are effectively removed from active trading, rising illiquid supply can create tighter available liquidity on exchanges and in the spot market.
Why readers should care: when a growing share of bitcoin is held illiquid, fewer coins are available to meet buying demand. That dynamic can amplify price moves once sentiment improves, potentially fueling stronger rallies. However, it doesn’t guarantee immediate gains — market liquidity, macro conditions, and trader behavior all play major roles.
Risk note: Supply metrics are useful context but are not investment advice. On-chain trends can shift quickly; investors should weigh liquidity, diversification, and risk tolerance before taking positions.
Source: CoinDesk. Read the original coverage for full details.
