72% of Bitcoin in circulation becomes illiquid as major investors accumulate - Cointribune

This article by Lydie M. explores how Bitcoin's liquidity is rapidly declining as large investors accumulate holdings at unprecedented rates.

Bitcoin's market dynamics are shifting dramatically as 14.3 million BTC (over 72% of circulating supply) becomes illiquid, held by long-term investors who rarely sell. Major players including whales and institutional investors are absorbing nearly 300% of new annual Bitcoin production, while companies and ETF managers have increased their holdings by 30% to 2.88 million BTC. This accumulation is creating significant supply scarcity on exchanges, reducing selling pressure but potentially increasing price volatility.

• Illiquid Bitcoin supply reaches record high of 14.3 million BTC, representing 72% of total circulation
• Whales absorb 300% of newly mined Bitcoin annually while institutional holdings surge 30%
• Supply scarcity creates bullish pressure but also amplifies potential market corrections
• Exchange outflows hit historic levels as investors move holdings to private wallets