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Glassnode reported the illiquid supply of Bitcoin is growing at an impressive rate of +119,000 BTC per month. This statistic highlights the concentration of coins into wallets that have a sparse history of spending. In other words, these wallets belong to investors who prefer to hold onto their Bitcoin rather than engage in frequent transactions. This growing illiquid supply is a clear indication of the prevailing HODLing trend within the Bitcoin community.

bitcoin hodling

HODLer Cycles and Market Dynamics:

To gain further insights into HODLer cycles and their impact on the market, a curated dashboard is available at glassno.de/3WEhuEa. This resource provides comprehensive information about the behavior of Bitcoin holders and their influence on the overall market dynamics. By analyzing HODLer cycles, traders and enthusiasts can better understand the sentiment and long-term investment strategies of Bitcoin holders.

Small Wallets Accumulate:

Interestingly, while the illiquid supply grows, smaller wallets, colloquially known as Bitcoin Shrimp, Crabs, and Fish (wallets with less than 100 BTC), have been actively accumulating Bitcoin. These small holders have been adding to their balances at a staggering rate, surpassing the amount freshly minted by miners by a whopping 248%. This suggests that individual investors with limited capital are actively participating in the Bitcoin market and contributing to its liquidity.

Sharks Join the Frenzy:

Moving up the ladder, larger Bitcoin holders known as Sharks (wallets with 100 to 1,000 BTC) are also increasing their holdings. This category of investors has added an additional 38% to their balances, further fueling the upward trajectory of the illiquid supply. The involvement of both small and large holders indicates a widespread belief in the long-term value of Bitcoin.

Coins Leaving Exchanges:

Another notable observation is the decreasing number of coins held on exchanges. As the illiquid supply grows, Bitcoin is being withdrawn from centralized platforms and moved to private wallets. This could be attributed to concerns about the security of funds or a desire to hold onto Bitcoin for an extended period. Regardless of the reasons, this shift from exchanges to personal wallets reinforces the HODLing trend and reduces the available supply for immediate trading.

Implications for the Market:

The increasing illiquid supply of Bitcoin suggests a strong HODLing sentiment within the community. HODLing often indicates a belief in the long-term potential of an asset and a reluctance to sell at current prices. As more Bitcoin is held in illiquid wallets, the circulating supply available for trading diminishes. This reduced supply, combined with growing demand, has the potential to exert upward pressure on Bitcoin’s price, making it an attractive investment opportunity for both long-term and short-term traders.



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