{"id":20857,"date":"2024-10-14T23:11:45","date_gmt":"2024-10-14T23:11:45","guid":{"rendered":"https:\/\/www.bitrabo.com\/discover\/?p=20857"},"modified":"2024-10-14T23:11:45","modified_gmt":"2024-10-14T23:11:45","slug":"bitcoins-illiquid-supply-soars-to-record-high-achieving-74-dominance-implications-and-insights","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/bitcoins-illiquid-supply-soars-to-record-high-achieving-74-dominance-implications-and-insights\/","title":{"rendered":"Bitcoin&#8217;s Illiquid Supply Soars to Record High, Achieving 74% Dominance: Implications and Insights"},"content":{"rendered":"\n<p>Recent on-chain analysis indicates that the Bitcoin Illiquid Supply has reached an unprecedented level. Here\u2019s a breakdown of its implications for Bitcoin.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"74_Of_Bitcoin_Supply_Is_Now_%E2%80%98Illiquid\"><\/span>74% Of Bitcoin Supply Is Now &#8216;Illiquid&#8217;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Analyst James Van Straten shared insights on X regarding the upward trend in Bitcoin&#8217;s Illiquid Supply. According to the on-chain analytics firm Glassnode, &#8216;liquidity&#8217; for Bitcoin is measured by the cumulative outflows and inflows of an entity over time.<\/p>\n<p>An &#8216;entity&#8217; is defined as a group of addresses identified by Glassnode as belonging to a single investor. Based on this metric, entities fall into three categories: Illiquid, Liquid, and Highly Liquid. Illiquid entities are characterized by high inflows and low outflows, with a liquidity ratio of less than 0.25. Conversely, Highly Liquid entities have a liquidity ratio over 0.75, meaning their inflows and outflows are balanced. This Illiquid Supply reflects the portion of Bitcoin that is unlikely to be moved soon, held by investors with a history of minimal selling. Meanwhile, the Highly Liquid Supply includes tokens that are frequently traded.<\/p>\n<p>The Liquid Supply sits between Illiquid and Highly Liquid, comprising those engaged in varying trading levels with liquidity ratios between 0.25 and 0.75.<\/p>\n<p>Importantly, Glassnode&#8217;s approach results in gradual transitions in these categories, rather than abrupt changes; an entity at a liquidity ratio of 0.25, for example, would split its classification evenly between Illiquid and Liquid.<\/p>\n<p>Here\u2019s a chart from Van Straten that illustrates the trends in Bitcoin&#8217;s Illiquid and Liquid + Highly Liquid Supplies:<\/p>\n<p><\/p>\n<p>The chart shows a notable increase in Bitcoin&#8217;s Illiquid Supply since the year&#8217;s beginning, indicating that investors are accumulating more coins. This has now peaked at approximately 14.7 million BTC, representing about 74% of the total circulating supply.<\/p>\n<p>&#8220;It&#8217;s intriguing to see the widening gap between illiquid versus liquid + highly liquid,&#8221; remarks the analyst. &#8220;The trading supply continues to decline, while market sentiment leans toward HODLing.&#8221;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Current_BTC_Price\"><\/span>Current BTC Price<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As of now, Bitcoin is valued at around $64,900, reflecting a rise of over 3% in the last week.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-medium aligncenter\" src=\"https:\/\/www.tradingview.com\/x\/oBxJE2xB\/\" alt=\"Bitcoin Price Chart\" width=\"1486\" height=\"852\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recent on-chain analysis indicates that the Bitcoin Illiquid Supply has reached an unprecedented level. Here\u2019s a breakdown of its implications for Bitcoin. 74% Of Bitcoin Supply Is Now &#8216;Illiquid&#8217; Analyst James Van Straten shared insights on X regarding the upward trend in Bitcoin&#8217;s Illiquid Supply. According to the on-chain analytics firm Glassnode, &#8216;liquidity&#8217; for Bitcoin [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":20858,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"Bitcoin's Illiquid Supply Soars to Record High, Achieving 74% Dominance: Implications and Insights - Bitrabo","description":"Recent on-chain analysis indicates that the Bitcoin Illiquid Supply has reached an unprecedented level. Here\u2019s a breakdown of its implications for Bitcoin. 74%"},"footnotes":""},"categories":[316],"tags":[4824,758,448,791,453,9437,9438,5203,1212,778,762],"class_list":["post-20857","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-all-time-high","tag-alltime","tag-bitcoin","tag-dominance","tag-high","tag-illiquid","tag-illiquid-supply","tag-meaning","tag-means","tag-sets","tag-supply"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/20857","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=20857"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/20857\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/20858"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=20857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=20857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=20857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}