The illiquid bitcoin has risen to a record high of 74% of the circulating supply.
The level reflects the increasing scarcity of BTC in the market and a potential bullish impact on its price.
Almost three-quarters of bitcoin produced is considered illiquid, a record level that suggests increasing scarcity of the cryptocurrency in the market and a potential bullish impact on its price.
Data tracked by ETC Group and Glassnode shows that illiquid entities now own 14.61 million BTC, worth over $826 million at current prices, equating to 74% of the cryptocurrency’s total circulating supply of 19.75 million.
“Bitcoin’s illiquid supply reached a new all-time high of almost 74% of circulating supply according to data provided by Glassnode, signaling that the Halving-induced supply shock is actually intensifying. This should provide an increasing tailwind for Bitcoin and other crypto assets over the coming months,” André Dragosch, head of research at ETC Group, said in a report shared with CoinDesk.
Glassnode identifies illiquid entities based on the ratio of cumulative outflows and inflows over the entity’s lifespan.
Increasing BTC scarcity in the market means a pick-up in demand could have an outsized bullish impact on the cryptocurrency’s going market rate.
As of writing, BTC was changing hands at $56,600. The bull run has stalled since prices hit lifetime highs above $70,000 in the first quarter.