Bitcoin’s illiquid supply hits all-time high amid regulatory concerns in crypto markets.
Despite regulatory challenges, a renowned crypto analyst highlights a bullish indicator for Bitcoin (BTC)—a remarkable increase in Bitcoin’s illiquid supply.
InvestAnswers claims in a recent video update to his 444,000 YouTube followers that Bitcoin’s illiquid supply has reached an unprecedented 72%, indicating unwavering market confidence in BTC.
The term “Bitcoin illiquid supply” refers to BTC held by entities known for historically retaining at least 75% of their coins. According to InvestAnswers, this milestone is significant because the current level of illiquid supply implies that 72% of Bitcoin is not available for sale. These experienced investors, known as hodlers, demonstrate their steadfast commitment to Bitcoin, especially given the current market cycle.
Furthermore, over the last 30 days, the analyst has noticed a significant influx of Bitcoin into the illiquid supply. This coincides with increased regulatory scrutiny of cryptocurrencies, including recent SEC lawsuits against major exchanges Binance and Coinbase for alleged securities violations.
According to InvestAnswers, the growing illiquid supply of Bitcoin reflects increased confidence in the cryptocurrency, which is fueled by the impending halving event in April 2024. This event, which halves miner rewards, is expected to boost Bitcoin’s value.
Bitcoin is currently trading at $25,971, representing a 0.6% increase in the last 24 hours.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.