Investors are in the business for the long term and have locked in 270,000 BTC in the last 30 days.
Is a price increase expected?
Despite the rising prices, Bitcoin investors are rapidly locking their BTC in the long term, and 270,000 BTC has been removed from the liquid supply in the last 30 days.
According to data released by crypto market data collector Glassnode, “liquid” Bitcoin wallets rose from 175,000 Bitcoin in early January to 270,000 BTC.
The data shows that the liquid supply of Bitcoin (BTC) has steadily dropped over the past nine months, the liquid supply is currently standing at 21.3% and showing no signs of return.
While Bitcoin’s increasingly illiquid supply may mean a rise for its price, new retail and institutional traders are vying for a dwindling supply. Glassnode estimates that about 80% of the 18.6 million Bitcoins in circulation are currently stored in “illiquid” wallets.
According to Glassnode, a Bitcoin wallet is not considered liquid if less than 25% of the Bitcoin received was transferred over the lifetime of the organization. Conversely, in order to be considered highly liquid, the majority of Bitcoin must be re-circulated with less than 25% of the entries.
Of the 3.9 million BTCs, 61% or 2.38 million, which Glassnode describes as highly liquid, are held by central exchanges.
The wallet tracking service Bitcoin Treasuries currently estimates that 33 institutional entities have accumulated more than 1.2 million BTC, or 6.5% of Bitcoin’s circulating supply, while increased institutional investment could be a major force causing Bitcoin’s liquid supply to run out. .
Over the past few days, Grayscale has increased its assets by around 25,000 BTC with a portfolio of 641,523.7 BTC as of January 20, 2021. To put this in perspective, about 900 Bitcoins are released every day. However, on average, only a third of them have been posted to exchanges since July 2020, according to Glassnode.