Research: Bitcoin’s rising illiquid supply suggests rising education regarding Bitcoin storage

2022-8-1 17:00

There’s no denying that the last seven odd months have been extremely bearish for the crypto market, with Bitcoin, the world’s largest cryptocurrency by total market capitalization, only witnessing year-to-date (YTD) monetary inflows worth just $14 million.

Furthermore, the flagship crypto’s illiquid supply ratio — i.e., the number of Bitcoin being moved out of exchanges and into hardware “cold storage” wallets or app-based  non-custodial wallets — has been on a steep rise since the start of 2022.

To elaborate, over 14.8 million illiquid BTC tokens currently exist, with this number having risen quite sharply (by approximately 500k) during the first half of the year alone. This is largely due to a host of macroeconomic factors surrounding the global economy (such as the recent Russian invasion of Ukraine, rising crypto liquidations, surging inflation and interest levels, etc.).

It is also pertinent to note that the total number of BTC in circulation currently stands at around 19 million, with around 900 coins being mined and added to the currency’s total supply pool per day.

In all, it is estimated that 76% of the cryptocurrency’s total supply is currently classifiable as illiquid, which is quite staggering considering that more than 90% of all Bitcoin that can ever exist has already been mined.

Bitcoin illiquid supply (via Glassnode)

This rise in illiquid supply is also supported by associated metrics such as Bitcoin’s ‘illiquid supply change,’ which is the monthly (30-day) net change in the supply of the digital currency held by illiquid entities. This is important because the recent macro-level events surrounding the market — such as the insolvencies of key market players like Three Arrows Capital, Celsius, Vauld, and Zipmex — have resulted in consumers learning the importance of self-custody (ala ‘not your keys, not your coins’).

To this point, the graph below clearly shows that the general trend surrounding investors moving their Bitcoin into external wallets has been on the rise, especially after the above-stated capitulations in June.

Bitcoin illiquid supply change (via Glassnode)

Bitcoin’s illiquid supply has been in a phase of continued accumulation for over six months, only to be interrupted last month. However, as visible above, the trend is again on the upturn, with more gusto than ever before. These sudden surges can have an adverse effect on the supply dynamics of Bitcoin, potentially resulting in the asset’s price being faced with a lot of volatility in the near-to-mid term. Therefore, it remains to be seen what the future has in store for Bitcoin.

The post Research: Bitcoin’s rising illiquid supply suggests rising education regarding Bitcoin storage appeared first on CryptoSlate.

origin »

Bitcoin (BTC) на Currencies.ru

$ 94819.64 (-0.77%)
Объем 24H $28.399b
Изменеия 24h: -0.68 %, 7d: -1.80 %
Cегодня L: $94819.64 - H: $96505.37
Капитализация $1879.896b Rank 1
Цена в час новости $ 22962.23 (312.94%)

bitcoin market rising total capitalization world only

bitcoin market → Результатов: 126


Bitcoin’s Rising Dominance: Shifting Miner Activity and Growing Institutional Interest

Since 2023, Bitcoin’s dominance within the cryptocurrency market has been steadily climbing and is now over 70% of the combined market cap of the top 300 assets. This reflects both growing investor confidence and a strengthening position for the asset as the leading store of value in the digital world. Meanwhile, recent changes in miner [...]

2025-2-11 12:25


Фото:

Bitcoin rebounds above $95K after Monday’s plunge: what’s next for crypto market?

The cryptocurrency market is showing signs of resilience after a sharp downturn on Monday, with Bitcoin leading a partial recovery to climb above the $95,000 mark. Bitcoin had previously plummeted to a low of $89,000—its lowest level in 24 days—as traders anxiously awaited the release of the latest US Consumer Price Index (CPI) report. Major […]

2025-1-14 08:49


Фото:

Bitcoin’s bull market: how to read the signals in 2025

Bitcoin, rebounding powerfully from its bear market lows, has reasserted itself as a leading asset, significantly outperforming traditional financial markets in 2024. Fueled by the historic launch of Bitcoin ETFs in January, a new US administration seemingly supportive of the crypto industry, and the Federal Reserve’s shift toward easing monetary policy, Bitcoin’s resurgence has been […]

2025-1-1 12:39


Bitcoin Fees Drop 86% While Market Confidence Soars As Dominance Reaches New Highs

Despite an 86% plunge in Bitcoin transaction fees this quarter, market confidence remains resilient, with Bitcoin’s dominance hitting its highest level since April 2021. BTC's market share reached its highest since April 2021 this quarter Bitcoin's price traded mostly sideways throughout the quarter, while ETH and smaller tokens set new […]

2024-10-7 12:05


Bitcoin ‘Final Cycle Pump’ Puts Price As High As $200,000

Bitcoin (BTC) could be gearing up its last explosive rally of a four-year market cycle, which traditionally kicks off at the beginning of a halving event and culminates just before the next one. A crypto analyst has boldly predicted that the price of Bitcoin could surge to $200,000 and above, marking new All-Time Highs (ATHs) and the peak of the long-awaited bull market.

2024-9-23 03:01