Onchain statistics reveal that around 78% of the supply of circulating bitcoin is illiquid. According to the research of Glassnode, that amount is barely accessible. Data hints that 14.5M BTC is classified as illiquid with only 4.2M bitcoin classified to be in constant circulation by many analysts. One treasured part of the BTC protocol indicates that the BTCs are scarce and the system seems mathematically proven.
When the creator of this crypto asset, Satoshi Nakamoto started, he set a cap on the supply to be 21M coins issued, but today, there appears to be approximately 18.58M bitcoin in circulation. Researchers from Glassnode, an analysis firm this week reported and analyzed the amount of illiquid and liquid coins that are in existence currently. Despite the data showing the fact that bitcoin exchanges have a huge amount of BTC for selling and trading on hand, the researchers of Glassnode have claimed 78% of the BTC’s current supply to be illiquid.
Bullish Investor Sentiment At Work In Bitcoin
Glassnode tweeted that 78 percent of the total BTC in circulating supply appears to be illiquid and also they are very hard to access and buy. This points towards the sentiment of a bullish investor with the hoarding of a huge quantity of BTC that reduces the selling pressure. It was further added by the analysts that Bitcoin liquidity is actually an average ratio of spent and received BTC across all the entities.
They stated that only 4.2M coins are in constant circulation meaning that they are accessible for selling and buying. The onchain analysis data reveals that the recent uptrend in the value of the crypto asset was actually fueled by issues of liquidity. For instance, in this year, the large institutions of finance and popular managers of a hedge fund were already on a path of purchasing these coins in major quantities.
