Increasing Bitcoin Monopoly 💰 - 72% of the Supply is Off the Market
Reaching a new peak in Bitcoin liquidity generally bodes well for the leading cryptocurrency. Given the holdings of long-term investors, it is unlikely that the supply will increase.
Glassnode data indicates that the illiquid supply of Bitcoin exceeds 72% of the circulating supply, amounting to 14.3 million Bitcoin. Long-term holders (LTHs) who have not traded their coins for over seven years hold this supply, demonstrating their confidence in the leading cryptocurrency.
The retention of a significant portion of Bitcoin supply by long-term investors reduces selling pressure, making it positive. This could create a supply shock when demand exceeds supply.
In a research note, asset management firm Fidelity stated that this new demand for Bitcoin, along with stable supply and a decreasing issuance schedule, is likely to drive the price to a new all-time high exceeding $124,000. Fidelity also predicted another increase in Bitcoin price in the future. Fidelity identified two groups that meet the criteria for Bitcoin's illiquid supply. The first is Bitcoin that has been held for over seven years, and the second is public companies that own 1,000 Bitcoin. Michael Saylor's strategy leads the second group with 638,985 Bitcoin, which is nearly 3% of the Bitcoin supply.
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