Bitcoin’s Liquid Circulating Supply Is Drying Up

At only 22% of the circulating supply, the total number of liquid bitcoins (BTC) on the market is quickly drying up, according to onchain data.

Added with the halving last year, which caused a 50% supply shock to all newly minted bitcoins, and it’s looking like we could be entering a significant liquidity crisis.

It’s estimated that 78% – 14.5 million bitcoins are illiquid, whereas only 4.2 million bitcoins are liquid and in regular circulation.

According to data analyst firm Glassnode, ‘78% of the circulating bitcoin supply is illiquid and therefore hardly accessible for buying. This points to a bullish investor sentiment as large amounts of BTC are being hoarded – which reduces sell pressure.’

‘Bitcoin liquidity is defined as the average ratio of received and spent BTC across entities. We show that currently 14.5M BTC are classified as illiquid, leaving only 4.2M BTC in constant circulation that are available for buying and selling.’ Read More

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