Bitcoin Illiquid Supply Hits 14M BTC, New Record Set

• Blockchain Council
• May 30, 2025

Bitcoin’s illiquid supply has just crossed 14 million BTC — the highest level in its history. This means most Bitcoin is now held by wallets that don’t regularly move or sell it. When more Bitcoin becomes “illiquid,” it suggests long-term holders are stacking, not trading.

In this article, we’ll explain what illiquid supply really means, why it matters for price action, and what new trends are emerging. You’ll also see how this compares with past bull cycles and how whales are reacting.

What Is Illiquid Bitcoin Supply?

Illiquid Bitcoin supply refers to coins that are held in wallets with little to no history of spending. These wallets typically belong to long-term holders or “HODLers” who are not actively trading their BTC.

According to on-chain data from Glassnode, the illiquid supply just crossed 14 million BTC out of the 19.7 million in circulation. That means over 70% of Bitcoin is currently off the market.

This trend is important because it reduces available BTC on exchanges, potentially leading to supply shocks when demand rises.

Why This Record Matters

A growing illiquid supply means more investors are choosing to hold rather than sell. It shows confidence in Bitcoin’s long-term value. It also mirrors a common pattern before previous bull runs.

For example, before the 2020 bull market, Bitcoin’s illiquid supply sharply increased. The same pattern is repeating now, possibly setting the stage for another price surge.

Key Metrics of Bitcoin’s Illiquid Supply

Here’s a summary of the latest figures based on data from Glassnode and Santiment:

This drop in exchange balances adds to the bullish case — fewer coins available for selling.

Who Is Accumulating BTC?

On-chain data shows whales (wallets holding between 10 and 10,000 BTC) added more than 83,000 BTC in the past month. These wallets are often early investors, institutions, or large funds.

This accumulation means big players are betting on Bitcoin’s future. It also supports the idea that less BTC will be available if demand increases quickly.

Bitcoin’s Illiquid Supply Cycle Overview

Let’s see how the current cycle compares to past accumulation phases:

This cycle’s illiquidity is the strongest yet — and that could influence how high BTC might go.

What This Means for Bitcoin’s Price

When supply becomes scarce and demand holds or grows, prices typically rise. Illiquid supply creates a base of holders that won’t panic sell. That lowers volatility and gives new buyers fewer coins to choose from.

This “supply squeeze” dynamic often leads to a price rally, especially when paired with positive macro trends like ETF approvals, halving cycles, or regulatory clarity.

Should Retail Investors Care?

Yes — because this shift shows Bitcoin is maturing. When more coins go into cold storage or offline wallets, it shows trust in BTC as a store of value. It also reflects fewer short-term traders controlling price movement.

Investors looking to build a long-term portfolio may see this as a strong bullish signal.

Learn More About Bitcoin and Crypto Trends

To better understand how supply, demand, and on-chain behavior shape crypto markets, upskill with these resources:

Get certified in market dynamics with a Crypto Certification. Want to analyze on-chain data more deeply? A Data Science Certification can help. For anyone promoting or managing digital asset portfolios, check out the Marketing and Business Certification.

Conclusion

Bitcoin’s illiquid supply hitting 14 million BTC is a clear signal that long-term holders are not letting go. With whales buying and fewer coins on exchanges, the market is preparing for the next big move.

This milestone also reflects trust in Bitcoin as more than a trading asset. It’s becoming a long-term store of value — and that changes everything.