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Glassnode: The number of accessible Bitcoins are decreasing

Glassnode: The number of accessible Bitcoins are decreasing

Rafael Schultze-Kraft, CTO of market analysis firm Glassnode, stressed that the number of bitcoins that are accessible is decreasing every day.

Rafael Schultze-Kraft, technology manager of the on-chain market analysis company Glassnode, made very important evaluations by giving figures about the Bitcoin supply. Stating on both Twitter and Glassnode’s page that Bitcoin investors are increasingly complying with the HODL philosophy, the successful CTO emphasized that the biggest crypto currency is turning into a value storage tool with limited supply.

Schultze-Kraft, who evaluated Bitcoin in 2020 on Twitter, shared a chart and used the following statements:

“This is one of the most important Bitcoin charts in 2020… Bitcoin liquidity is now crushing. Investors are completely custody and the number of BTC accessible is decreasing.

This year, 1 million BTC has become illiquid. As an example, institutions spent less than 25 percent of the coins they acquired. There are far less BTC to buy for you now. ”

“This is a rising scenario…”
Making a more detailed explanation in Glassnode’s article on the website, Schultze-Kraft stated that 88.5 percent of the total supply has been removed and the current amount in circulation is 18.6 million BTC and said:

“However, the number of Bitcoins that can be bought and sold is much lower than this number. It is not only the lost Bitcoins (about 3 million), but also the fact that investors are moving more and more to the HODL mentality. Bitcoin is becoming an even greater store of value as time goes on. Therefore, the number of liquid BTC is gradually decreasing.

Removing the number of illiquid Bitcoins is important in understanding its market. If the number of illiquid BTC increases, there will be a crisis on the supply side. This reduces the selling pressure on Bitcoin. In other words, the increase in the number of illiquid Bitcoins indicates investors’ strong HODL sentiment, which is a very, very large price bullish indicator.

78 percent of Bitcoin’s circulating supply is illiquid. As a result, this part is very difficult to purchase. 14.5 million BTC is currently illiquid. This puts only 4.2 million BTC in a position to be bought and sold.

In 2020, an extra 1 million BTC became illiquid. This is a huge bullish signal. In fact, the current bull run is being driven by this liquidity crisis, episode by episode.

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