Bitcoin Illiquid Supply Soars This Week, Here's Why It May Be Bullish
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Glassnode data vendor has reported that the illiquid supply of Bitcoin is now 3.2x bigger than the highly liquid one.
In the meantime, Bitcoin has dipped below $39,000 on the news of the approaching Fed rate hike.
Supply of BTC held in cold wallets spikes
As per the recent tweet by Glassnode, this week, the Bitcoin Illiquid Supply Shock Ratio has seen a major rise, reaching a high of around 2 on the shared chart.
As the data aggregator explains, the illiquid supply of the flagship cryptocurrency shows how much BTC is stored in wallets whose owners have been spending little or none of their BTC.
At the moment, the illiquid supply of Bitcoin is 3.2x bigger than the liquid supply and the highly liquid one put together.
Therefore, the amount of BTC that wallet owners are hodling tight in their cold wallets has surpassed the liquid supply of the leading crypto.
The #Bitcoin Illiquid Supply Shock Ratio, first developed by @WClementeIII, has ticked significantly higher this week.
— glassnode (@glassnode) March 13, 2022
Illiquid $BTC supply represents coins held in wallets with little to no history of spending. It is now 3.2x larger than Liquid and Highly Liquid supply combined pic.twitter.com/N0xejizRDE
Alex DovbnyaInstitutions keep entering BTC
Another data company, IntoTheBlock, has tweeted that the majority of Bitcoin transactions at the moment—more than 99%—move at least $100,000 worth of BTC.
Since Quarter 3, 2020, financial institutions have accelerated entering Bitcoin, and the market structure began to change fast.
Crypto's Institutional Appeal Continues to Grow
— IntoTheBlock (@intotheblock) March 13, 2022
99% — Currently over 99% of all #Bitcoin volume comes from transactions of over $100k
The dominance of institutions and change in market structure accelerated in Q3 2020 pic.twitter.com/Lo0ieCrPZG
Elon Musk holds onto his crypto
In a tweet published earlier today, the head of Tesla and SpaceX centibillionaire Elon Musk stated that as inflation rises, he does not plan to sell any of his Bitcoin, Ethereum and Dogecoin stashes.
This caused a brief spike in the prices of these digital currencies.
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Alex Dovbnya
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