Bitcoin Illiquid Supply Drops by 62,000 BTC as Dormant Wallet Outflows Rise and Whales Accumulate, Suppressing Price Momentum

According to Glassnode, the illiquid Bitcoin supply has begun pulling back, with roughly 62,000 BTC moving from long-term dormant wallets since mid-October, signaling higher on-chain liquidity and a potential shift in supply dynamics.

As the illiquid stock contracts, more tokens may enter the circulating market; without renewed demand, any sustained price uptrend could encounter meaningful resistance.

Historically, this cycle’s illiquid supply once acted as a primary driver, but a recent reversal has softened momentum. Earlier, January 2024 recorded a broader outflow of approximately 400,000 BTC from dormant addresses.

Whale wallets continued accumulation over the past 30 days, with no notable sell-offs since October 15. The largest outflows originated from wallets holding 0.1–10 BTC, a cohort that has trended net sellers since late 2024. Absent stronger spot demand, the on-chain supply-demand gap may keep pressure on prices.

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