72% of Bitcoin Supply Remains Locked Away
As of recent data, Bitcoin’s illiquid supply has reached an all-time high of 14.3 million BTC. This figure, representing over 72% of the circulating supply, is locked away and remains inactive in trading, signaling increased confidence among long-term holders (LTHs). This surge includes the accumulation of 20,000 BTC in the last 30 days, even amidst market corrections.
At the time of writing, Bitcoin (BTC) was trading at $111,160, reflecting a 0.5% daily gain. Such tightening liquidity has sparked discussions about whether this accumulation phase could catalyze the next bullish breakout for the cryptocurrency market.
Miner Activity and Market Implications
The Miners’ Position Index (MPI), which measures miner outflows against their one-year average, recently dropped to -1.41, denoting a decrease in selling activity. Historically, reduced miner outflows have coincided with accumulation phases, which help ease immediate market supply pressures. However, this moderation does not completely eliminate potential downside risks since miner behavior can shift rapidly during market volatility.
Nevertheless, a declining MPI highlights that miners are holding rather than selling, which aligns with broader accumulation trends.
Spot Market Trends: The Battle Between Buyers and Sellers
Despite the optimism among LTHs and miners, current Spot Taker CVD data points to persistent sell-side dominance over a 90-day window. This imbalance reflects a tendency for short-term participants to take profits or hedge positions, creating resistance for any bullish momentum. Unless stronger buying pressure emerges, this sell-side dominance may continue to suppress Bitcoin’s price trajectory in the near term.
However, the Network Value to Transaction (NVT) Golden Cross recently showed a 25.57% improvement, reaching -0.60. This metric indicates a more favorable network valuation compared to transactional volumes and is often associated with recovery or accumulation phases preceding bullish trends. While sell pressure remains a concern, the NVT trend provides hope for a constructive outlook over the long term.
Bitcoin’s Crossroad: What Happens Next?
The record illiquid supply of Bitcoin and declining miner outflows underscore the strong conviction among long-term holders. However, the persistent sell-side dominance in the Spot market tempers near-term bullish excitement. If buying activity strengthens, Bitcoin’s tightened liquidity could accelerate its next breakout. Without increased demand, however, short-term sellers may continue to cap price growth.
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