Bitcoin’s illiquid supply—the portion of coins held by entities with little history of spending—has reached a new record high, exceeding 14.3 million BTC in late August. Currently, there are 19.9 million BTC in circulation, with approximately 72% of the total supply being illiquid, retained by long-term holders and cold storage investors. This growth underscores a continuous accumulation trend, even amidst recent market fluctuations.
In mid-August, bitcoin reached an unprecedented peak of $124,000 before experiencing a decline of approximately 15%. Even with the recent price decline, the illiquid supply has continued to increase, indicating that holders are not swayed by temporary fluctuations. In the last 30 days, the net change in illiquid supply has risen by 20,000 BTC, highlighting ongoing investor confidence.
The continuous rise in this category indicates a tightening of supply dynamics, which may pave the way for renewed momentum when sentiment improves. The current trend indicates an increasing belief in bitcoin as a sustainable long-term store of value.