The Bitcoin market is witnessing a significant shift in supply dynamics, with the illiquid supply of BTC reaching an unprecedented 14.3 million coins. This milestone indicates that over 72% of the circulating Bitcoin is now held in wallets with minimal spending history, reflecting strong accumulation by large-scale investors. The growing illiquid supply suggests a substantial reduction in sell-side pressure, as these coins are effectively removed from the available market inventory. This trend aligns with the ongoing decline of Bitcoin reserves on major cryptocurrency exchanges, which have been consistently falling over recent months. Market analysts interpret this development as a bullish signal, pointing to increased confidence among long-term holders and institutional players. The accumulation pattern underscores a strategic positioning ahead of potential market cycles, reinforcing the narrative of Bitcoin as a store of value. As supply becomes increasingly constrained, the stage is set for potential price appreciation, provided demand remains steady or increases. This supply crunch highlights the evolving maturity of the Bitcoin market and its growing appeal to strategic investors seeking exposure to digital scarcity.
