Bitcoin’s illiquid supply continues to hit multi-year highs

[ad_1]

The following is taken from a recent edition of Deep Dive, Bitcoin Magazine’s premium market newsletter. To be among the first to receive this and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

The illiquid supply continues to hit multi-year highs, adding nearly 371,000 bitcoins since the deceleration in May. Even with the recent price drops brought on by long liquidations and massive sales in the market, the illiquid supply continues to increase, indicating that more long-term holders are adding bitcoin in recent months.

Bitcoin’s illiquid supply hits an all-time high.

As a percentage of circulating supply, illiquid supply is 76.13% and just below the all-time high of 76.26% also seen in May. The percentage of illiquid supply of circulating supply has been strongly correlated with price over the past year.

The illiquid supply of Bitcoin as a percentage of the circulating supply.

Illiquid supply trends also show that the most recent withdrawals have been driven largely by the derivatives market and not so much by the cash market. With every major bitcoin correction, there has been a significant deceleration in illiquid supply due to the variation in illiquid supply over 30 days. This is typically a 30-day change in illiquid supply equal to or less than -1%.

A 1% change in illiquid supply today would amount to 143,942 bitcoins worth just over $ 7 billion at a price of $ 49,000. We expect a larger, one-time bitcoin correction to come with a decelerating illiquid supply, which has not been seen in recent months.

Bitcoin illiquid supply, 30 day change.

[ad_2]