Bitcoin Illiquid Supply Change Highlights Growing Investor Conviction and Preference for Self-Custody

Bitcoin's illiquid supply may be at a critical juncture, indicating substantial market changes. Recent data from Glassnode reveals a renewed increase in the

Highlighting a key onchain metric, Bitcoin Illiquid Supply Change is a crucial indicator that provides insights into the net change of supply held by illiquid entities over a 30-day period.

This metric serves as a valuable barometer of the overall market sentiment and крупных shifts in investor behavior. Throughout 2024, Bitcoin’s illiquid supply has undergone significant fluctuations.

illiquid entities are typically defined as those that have not moved their coins in a substantial amount of time, indicating a preference for long-term hodling over active trading. Coins held by exchanges, on the other hand, are generally considered more liquid as they can be easily accessed for trading purposes.

Recent data from Glassnode reveals a renewed increase in Bitcoin’s illiquid supply, particularly since May, highlighting a strong trend towards self-custody among investors.

This shift suggests a growing preference for long-term holding over active trading, a strategy that aims to minimize exposure to short-term market volatility and capture gains over a more extended time frame.

Furthermore, the illiquid supply of Bitcoin, which represents coins that have been moved out of exchanges and into non-custodial wallets, has seen substantial fluctuations in 2024.

These changes often correlate with broader market forces and investor sentiment, providing valuable insights into the overall health and direction of the crypto market.

notably, this trend reflects a deeper understanding among investors of the importance of secure storage, especially following recent market turmoil and high-profile exchange failures.

Moreover, as CryptoSlate reported, Bitcoin’s illiquid supply hit a ten-year high in December 2023, showcasing strong investor conviction.

This increase in illiquid supply typically coincides with upward price movements, suggesting that as more Bitcoin is being stashed away in long-term storage, the available supply for trading decreases, potentially driving prices higher.

The illiquid supply continued to increase throughout 2024, starting in mid-February. While the rate of change did decrease in May, it has again begun to rise.

Overall, the trend towards increased illiquid supply spotlights growing confidence in Bitcoin’s long-term value and investors’ strategic shift toward minimizing exposure to market volatility.

News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-illiquid-supply-change-highlights-growing-investor-conviction-preference-custody.html

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