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

Bitcoin is becoming scarce… at least on the open market. The “illiquid supply” has just registered a new high at 14.3 million BTC, while whales absorb more than the annual production. As a result, there are fewer coins available for sale and selling pressure is weakening.

A mostly illiquid bitcoin supply

Bitcoin’s illiquid supply has just broken a record of 14.3 million BTC. Concretely, this means that over 72% of mined Bitcoins are now held by long-term holders, who have very little history of selling. This trend mechanically reduces the amount of BTC available on exchange platforms and eases selling pressure.

With a circulating supply of about 19.92 million BTC, liquidity scarcity on the market is increasing. Outflows from exchanges reach historic levels. This is a sign that many investors prefer to secure their holdings in private wallets rather than leave them available for sale.

The consequence is twofold. On one hand, market depth decreases, increasing potential volatility. On the other hand, each buying wave exerts stronger upward pressure on the price, since available coins become scarce.

Whales and institutions on the front line

Data shows that whales and “sharks” now absorb nearly 300% of the new annual bitcoin issuance. In other words, for each mined Bitcoin, these large holders buy almost three. This unprecedented accumulation pace highlights the growing confidence of these players in the network’s long-term value.

Meanwhile, companies and ETF managers are strengthening their presence. By 2025, their strategic reserves rose from 2.24 million to 2.88 million BTC, a nearly 30% increase.

Fidelity also predicts that by the end of 2025, long-term holders (LTH) and listed companies could control over 6 million bitcoins, more than 28% of the total supply that will ever exist.

This concentration of supply in the hands of institutional and corporate players reflects growing adoption of Bitcoin by traditional finance. For the markets, it means further scarcity of available supply and a potential bullish leverage if demand keeps rising.

Scarcity bringing opportunities and risks

The rise of the illiquid supply shapes a scenario favorable to rapid increases. Any demand shock, whether from spot ETFs, companies, or retail investors, can trigger a disproportionate price rise, owing to insufficient liquidity to absorb purchases. Halving cycles, which reduce issuance of new coins, only intensify this phenomenon.

However, it would be unwise to see this as a linear path. A low liquidity market also amplifies corrections. If a group of large holders decides to take profits on their bitcoin, the drop can be as sharp as the rise. Added to this are regulatory and macroeconomic risks, capable of rapidly changing investor behavior.

In this context, one should monitor the evolution of the illiquid supply, outflows from exchanges, whale purchases, and subscriptions to crypto ETFs. These data help understand where the supply tension lies and anticipate price movements.