According to Odaily Planet Daily, Glassnode posted on social media that the illiquid Bitcoin supply has begun to decline, with approximately 62,000 BTC transferred out of long-dormant wallets since mid-October. As the illiquid supply decreases, more tokens will enter the circulation market. Without strong new demand, the upward trend in prices will face greater resistance.

Illiquid supply was a significant driver of this cycle, but the recent reversal has disrupted this trend. Historically, similar supply reversals have tended to weaken market momentum—a larger outflow of 400,000 BTC occurred in January 2024. While the current change is relatively mild, the trend is noteworthy.

Interestingly, whale wallets have continued to increase their holdings during this period. Whale holdings have steadily increased over the past 30 days, with no significant sell-offs since October 15th. The largest outflows have consistently come from wallets holding 0.1-10 BTC (approximately $10,000 to $1 million in assets). This group has been consistently net sellers since November 2024. Momentum traders have largely exited the market, while bargain-hunting funds have failed to generate sufficient demand to absorb the selling pressure. With first-time buyers on the sidelines, this supply-demand imbalance will continue to suppress prices until stronger spot demand emerges.

Bullish

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Bearish

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