Despite an uncertain global economy, geopolitical issues and extreme market volatility, large Bitcoin holders are still not ready to spend their digital assets. Glassnode’s weekly on-chain analysis report indicates that the illiquid Bitcoin supply, a metric that shows the volume of coins held in wallets with little or no history of spending, has increased to its highest level in nearly 10 months.

Almost 76.3% of the circulating BTC supply is illiquid, compared to 76% in May 2021. Long-term holders of Bitcoin have kept accumulating the crypto asset steadily over the past few months. Last month, top BTC addresses holding above 100,000 coins increased their accumulation. As a result, their cumulative holdings have crossed 664,000 BTC.

“As a proportion of circulating supply, Illiquid Supply has now surpassed the May 2021 peak, reaching 76.3%. This has now returned to the same level as the 2017 market top, reversing a four-year-long increase in coin wallet liquidity. Note, however, that both of these instances preceded major sell-off events, thus it remains to be seen if these coins are truly in cold storage,” Glassnode outlined.

BTC’s Price Recovery

Bitcoin’s recent price recovery had a positive impact on its overall network activity. Glassnode highlighted that the latest surge in BTC’s price has caused a sharp increase in its profitable supply. According to the data provider, BTC's supply in profit has jumped from 65% to 75% as a result of its recent price boom.

BTC exchange supply, which indicates the on-chain flow trend of Bitcoin, has been in a downtrend for the past 3 months.

“We have also seen a persistent decline in the number of investors depositing to exchanges, falling from 74k/day at the Nov ATH, down to 41k/day today. Meanwhile, exchange withdrawals are holding very steady at around 40k to 48k/day, again indicative of a consistent pool of HODLers withdrawing rain, hail or shine,” the report mentioned.

Despite an uncertain global economy, geopolitical issues and extreme market volatility, large Bitcoin holders are still not ready to spend their digital assets. Glassnode’s weekly on-chain analysis report indicates that the illiquid Bitcoin supply, a metric that shows the volume of coins held in wallets with little or no history of spending, has increased to its highest level in nearly 10 months.

Almost 76.3% of the circulating BTC supply is illiquid, compared to 76% in May 2021. Long-term holders of Bitcoin have kept accumulating the crypto asset steadily over the past few months. Last month, top BTC addresses holding above 100,000 coins increased their accumulation. As a result, their cumulative holdings have crossed 664,000 BTC.

“As a proportion of circulating supply, Illiquid Supply has now surpassed the May 2021 peak, reaching 76.3%. This has now returned to the same level as the 2017 market top, reversing a four-year-long increase in coin wallet liquidity. Note, however, that both of these instances preceded major sell-off events, thus it remains to be seen if these coins are truly in cold storage,” Glassnode outlined.

BTC’s Price Recovery

Bitcoin’s recent price recovery had a positive impact on its overall network activity. Glassnode highlighted that the latest surge in BTC’s price has caused a sharp increase in its profitable supply. According to the data provider, BTC's supply in profit has jumped from 65% to 75% as a result of its recent price boom.

BTC exchange supply, which indicates the on-chain flow trend of Bitcoin, has been in a downtrend for the past 3 months.

“We have also seen a persistent decline in the number of investors depositing to exchanges, falling from 74k/day at the Nov ATH, down to 41k/day today. Meanwhile, exchange withdrawals are holding very steady at around 40k to 48k/day, again indicative of a consistent pool of HODLers withdrawing rain, hail or shine,” the report mentioned.