February 8, 2023

Glassnode Data Shows 15 Million Bitcoin Goes into Self Custody

At present, around 78% of the total circulator supply of Bitcoin is stored in the form of self-custody. It means that around 15 million Bitcoins are outside of the active user circulation.

In comparison, only 22% of the total mined Bitcoin is circulating on exchanges and DEX platforms for trading. As per the latest media report, a massive amount of Bitcoins are illiquid.

The data projection was issued by Glassnode driven out of on-chain data metrics. It also means that around 22% of all mined Bitcoins are present in inactive wallets that are away from exchanges.

These metrics also reveal that investors have been drawing out their Bitcoin investments from the main exchange and putting them in private custodial accounts.

At one end, it has been indicated that investors have become more careful about their Bitcoin reserves under the context of FTX bankruptcy.

On the other hand, it is also visible that Bitcoin investors are choosing to retain their investments rather than sell them. After weeks of negative factors, the projections for Bitcoin supply can be helpful for investors.

The significant increase in the illiquid supply of Bitcoin means that the digital currency has a very small composition of weak hands. Weak hands persist in small numbers, and it would be difficult for bears to take control of the market once again.

Crypto Whales to Increase their Crypto Holdings

The supply projections by Glassnode also point out that Bitcoin large-capital buyers might be preparing to increase their acquisition. It has been projected that whales, institutions, and other buyers will increase their positions. There are only 4.3 million Bitcoins present in circulation at present.

Meanwhile, the rate of liquid supply has consistently diminished during the last few months. The phenomenon has been projected as a bullish development with a long-term view.

Glassnode has estimated highly liquid Bitcoins are 3 million while liquid Bitcoins are 1.3 million. Both these classifications are currently in a downtrend.


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