Bitcoin Shake-Up: 62,000 Coins Leave Long-Term Storage Amid Market Volatility

 

Bitcoin Illiquid Supply Drops by $7 Billion as Long-Term Holders Move Coins

Long-term Bitcoin holders have shifted approximately 62,000 coins out of previously inactive wallets since mid-October, representing one of the first significant decreases in illiquid supply for the second half of 2025. At current market prices, this movement amounts to roughly $7 billion, according to blockchain analytics firm Glassnode.

The timing of this shift coincides with Bitcoin trading around $115,550, down from its early October peak of over $125,000. Analysts note that changes in illiquid supply can have a meaningful impact on market dynamics, as coins previously held off-chain or in long-term storage become available for trading. This influx of coins into the market could potentially make sustained price rallies more challenging without strong external demand from new buyers or institutional participants.

Behavior of Whale Wallets vs. Mid-Sized Holders

While illiquid supply overall has declined, the behavior of large Bitcoin holders, often referred to as “whales,” appears to contrast sharply with that of mid-sized investors. Data from Glassnode indicates that wallets holding between $10,000 and $1,000,000 worth of Bitcoin have experienced the largest outflows. These mid-tier investors have been steadily selling since November of last year, pointing to a trend of momentum-driven exits.

Meanwhile, the largest holders—those with significant positions exceeding millions in Bitcoin—have largely maintained or even increased their balances during this period. This divergence underscores a bifurcated market structure: large-scale, long-term investors continue to accumulate, while smaller and medium-sized holders adjust their positions in response to short-term market movements.

Implications for Market Supply and Price Action

The decrease in illiquid supply has broader implications for Bitcoin’s price dynamics. When more coins are accessible for trading, market supply increases, and unless there is adequate buying pressure, this can hinder rapid price appreciation. Analysts highlight that momentum buyers—investors seeking quick profits from short-term trends—have largely exited the market, leaving fewer participants to absorb the selling pressure.

Dip buyers, who typically purchase during price corrections, have not contributed enough capital to counterbalance the outflows. This imbalance between supply and demand has created headwinds for the market, despite the fact that approximately 82.3% of circulating Bitcoin remains in profit. This figure represents an increase from a year-to-date low of 76% recorded in April, suggesting that the majority of holders remain above their acquisition cost and continue to have confidence in long-term value.

Long-Term Scarcity Trends

A recent report from Fidelity Digital Assets projects that nearly 42% of all Bitcoin supply, or roughly 8.3 million coins, could be classified as illiquid by the second quarter of 2032 if current trends persist. Fidelity’s analysis highlights the growing significance of scarcity in Bitcoin’s long-term outlook. As more entities—including institutional investors, corporations, and potentially nation-states—adopt long-term holding strategies, the proportion of Bitcoin held off exchanges and out of circulation is expected to increase.

The report further notes that favorable regulatory developments and broader institutional adoption could accelerate this trend. With an increasing percentage of the total supply remaining illiquid, scarcity could emerge as a powerful driver of Bitcoin’s future value, reinforcing the asset’s appeal as a store of wealth.

Investor Takeaways

For traders and retail investors, the current shifts in illiquid supply suggest a market in transition. Short-term price movements may continue to fluctuate as mid-sized holders adjust positions, but long-term holders appear committed to accumulation, providing a stabilizing influence on the market.

Analysts advise keeping a close eye on supply metrics such as the ratio of illiquid to liquid coins and monitoring whale activity, as these indicators often signal longer-term trends in Bitcoin’s price trajectory. Despite the recent $7 billion worth of coins moving into circulation, the underlying trend toward long-term holding remains intact, offering a potential floor for Bitcoin prices in the coming months.

Conclusion

The movement of 62,000 Bitcoin from inactive wallets highlights the delicate balance between market liquidity and long-term accumulation. While this influx may temporarily pressure prices, the continued commitment of large holders and the projected growth of illiquid supply suggest that scarcity remains a defining feature of Bitcoin’s ecosystem. Investors seeking exposure to the cryptocurrency may find reassurance in the resilience of long-term holders and the strategic accumulation of whales, which could help sustain Bitcoin’s value over the next decade.

As Bitcoin navigates fluctuations in supply and demand, understanding these trends will be crucial for both short-term traders and long-term investors. With scarcity poised to increase, Bitcoin continues to solidify its status as a digital asset with enduring appeal in the evolving cryptocurrency landscape.

Source

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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