Bitcoin (BTC) is flowing into wallets controlled by illiquid entities, or network participants with little-to-no spending history, at the fastest rate in six months, indicating a bias for accumulation from long-term investors. According to Glassnode’s illiquid supply change metric, which measures the number of coins held by illiquid wallets on a specific date compared with the same day the previous month, the total held by illiquid entities has jumped to a record high 15,207,843 BTC, with the tally increasing by 215,000 BTC in the past four weeks alone.
The rate of flow into illiquid wallets is ‘supporting the case for a gradual and steady accumulation taking place,’ Glassnode analyst James Check said in a weekly report published Monday, noting the record balance held by illiquid entities and the dwindling exchange balance.
The illiquid supply change indicator turned positive on May 24, signaling renewed accumulation, and has increased sharply since then. This suggests that investors remain confident of bitcoin’s price prospects despite continued macroeconomic uncertainty and heightened regulatory risks.
Other things being equal, faster accumulation means weakening supply in the market and potential for price rise. Technical charts suggest scope for bull revival as long as crucial support at $25,200 is held intact, that is the Bitcoin price doesn’t drop below that level. Bitcoin changed hands at about $26,750 at press time, having put in a high above $27,150 during the Asian trading hours, according to market data.