A popular crypto analyst says one bullish sign for Bitcoin (BTC) is the king crypto’s soaring illiquid supply in the face of regulatory headwinds.
In a new video update, InvestAnswers tells his 444,000 YouTube subscribers that Bitcoin’s illiquid supply has hit an all-time high at 72%, which he considers a sign of confidence in BTC’s market.
[adinserter block="1"]Bitcoin’s illiquid supply is a term used to refer to the amount of BTC held by entities that historically always hold onto at least 75% of their coins.
“Bitcoin illiquid supply hits an all-time high. And this is kind of historical because, one, it’s never been this high, of course, and that means 72% of Bitcoin is not for sale. The illiquid supply are people who tend not to sell, and especially where we are in this cycle. These are veterans, they know what they’re doing.”
He also notes that a huge supply of Bitcoin moved into the illiquid supply in just the last 30 days. The rise of the metric coincides with the ramping up of enforcement against crypto, including last week’s lawsuits filed by the U.S. Securities and Exchange Commission (SEC) against Binance and Coinbase, the world’s top two crypto exchanges, for allegations of securities violations.
According to the analyst, the increase in Bitcoin’s illiquid supply indicates increased confidence in BTC and a belief that next year’s scheduled halving event in April 2024, when miner rewards are cut in half, will send Bitcoin higher.
“But what’s also interesting is over the past 30 days 131,000 Bitcoin have gone illiquid. This is also the fastest rate ever, and this is likely due to a combination of factors. Investors are becoming more confident in Bitcoin as a long-term investment. The halving is coming up. Even with the recent Bitcoin price volatility, it has made some investors hesitant to sell and, apparently, some institutional investors are starting to accumulate.”
Bitcoin is trading for $25,971 at time of writing, up 0.6% during the last 24 hours.
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