Bitcoin illiquid supply hits 14M BTC as hodlers set bull market record

Bitcoin Illiquid Supply Hits 14M BTC

Bitcoin's illiquid supply recently made news as it reached a record 14 million BTC. This milestone, which was tracked by Bitcoinmeter, signified that long-term holders, also known as 'hodlers', were not selling their Bitcoin, but instead, holding onto their assets with a belief in the future value.

What is Bitcoin's Illiquid Supply?

Bitcoin’s illiquid supply refers to the amount of Bitcoin that is held by those who are not selling. These are Bitcoin coins that are not readily available for trading. This illiquid supply plays a significant role in influencing the price of Bitcoin. When Bitcoin's illiquid supply increases, it signifies that the demand for BTC is high, but the supply is low, potentially leading to an increase in price.

Why is this significant?

The Bitcoin illiquid supply hitting 14M BTC is significant because it illustrates a bullish sentiment in the market. It indicates that a growing number of investors believe in the long-term value of Bitcoin, and are not selling their holdings. This increased holding activity decreases the market liquidity of Bitcoin, but increases the potential for higher prices due to the reduced supply.

Influence of Bitcoin Fear and Greed Index

The Bitcoin Fear and Greed Index is another important metric that measures the market sentiment. When the index is high, it indicates that investors are greedy and the market is likely overbought. Conversely, when the index is low, it suggests that investors are fearful, and the market is possibly oversold. The Bitcoin Fear and Greed Index, along with the illiquid supply, provides a comprehensive view of the market sentiment.

Conclusion

The record 14M BTC illiquid supply reflects a highly bullish sentiment among Bitcoin holders. It's a strong indication that many are betting on Bitcoin's long-term value and potential. However, as with any investment, it's important to conduct thorough research and consider all factors, including market sentiment, as shown by the Fear and Greed Index.

Disclaimer: This content is for informational purposes only and not financial advice...