Bitcoin Whales Accumulate as Illiquid Supply Declines, Hinting at Price Pressure

• Illiquid supply drop: 62,000 BTC worth $7 billion moved from inactive wallets, breaking the bullish trend.

• Whales are accumulating Bitcoin over the last 30 days without significant sales since October 15.

• Smaller wallets (0.1-10 BTC) drive selling, leading to supply imbalance as momentum buyers exit.

Bitcoin illiquid supply decline in 2025 pressures prices as long-term holders sell. Discover whale accumulation trends and market impacts for informed investing decisions today.

What Is Causing the Decline in Bitcoin’s Illiquid Supply?

Bitcoin’s illiquid supply refers to coins held long-term in inactive wallets, untouched for extended periods. According to Glassnode, this supply has started declining, with approximately 62,000 BTC—valued at around $7 billion—moving out of long-term, inactive wallets since mid-October 2025. This marks the first noticeable drop in the second half of 2025, breaking the accumulation trend that fueled the bullish cycle and increasing available coins for trading, which can hinder price gains without new demand.

How Are Whales Responding to the Bitcoin Illiquid Supply Decline?

While long-term holders reduce positions, large investors known as whales are countering the trend by accumulating more Bitcoin. Glassnode reports that whale wallets have grown their holdings over the past 30 days and have largely held steady without major sales since October 15, 2025. This accumulation contrasts with historical patterns; for instance, in January 2024, a massive 400,000 BTC outflow from long-term wallets led to a market slowdown. Expert analysis from Glassnode highlights, “What’s interesting is that whale wallets have actually been accumulating during this phase,” suggesting confidence in Bitcoin’s long-term value despite short-term pressures. Current data shows Bitcoin trading around $113,550, down from its early October high of over $125,000, per CoinMarketCap metrics. This whale behavior could provide a stabilizing force, but sustained buying from other market participants is needed to offset the increased supply. Fidelity Digital Assets’ report reinforces Bitcoin’s scarcity narrative, projecting that by Q2 2032, 42% of Bitcoin—or 8.3 million BTC—could remain illiquid if trends persist, underscoring the asset’s enduring appeal to institutional holders.

Frequently Asked Questions

What Does the Bitcoin Illiquid Supply Decline Mean for Prices in 2025?

The decline in Bitcoin’s illiquid supply means more coins are entering circulation, potentially creating downward pressure on prices unless balanced by strong demand. Glassnode data indicates this shift since mid-October 2025 has contributed to a pullback from $125,000 highs, but whale accumulation may mitigate severe drops, with prices stabilizing around $113,000 as of late October.

Are Long-Term Bitcoin Holders Still Accumulating Despite Recent Sales?

No, long-term Bitcoin holders have begun reducing holdings for the first time in the second half of 2025, with 62,000 BTC leaving inactive wallets. However, this doesn’t erase the overall scarcity story; Fidelity Digital Assets notes that illiquid supply could still reach 8.3 million BTC by 2032, supporting long-term value as more entities opt to buy and hold.

Key Takeaways

• Supply Shift: The drop in illiquid supply signals a break from Bitcoin’s bullish trend, increasing trading availability and price volatility risks.
• Whale Strength: Large holders are accumulating, adding over 30 days of gains without sales, providing potential market support amid sell-offs.
• Future Scarcity: Despite current pressures, projections show 42% of Bitcoin remaining illiquid by 2032, reinforcing its role as a long-term store of value.

Conclusion

The decline in Bitcoin’s illiquid supply in late 2025 highlights evolving market dynamics, with long-term holders introducing selling pressure from smaller wallets while whales accumulate to counterbalance it. As Glassnode’s analysis shows, this imbalance underscores the need for fresh demand to sustain upward momentum. Looking ahead, Bitcoin’s inherent scarcity, as detailed in Fidelity Digital Assets’ projections, positions it strongly for institutional adoption—investors should monitor whale activity and broader demand signals for the next phase in this crypto cycle.

This time, whales are doing the opposite, accumulating more Bitcoin and holding steady since October 15, according to Glassnode.

Bitcoin’s long-term holder activity is showing a shift. According to data from Glassnode, around 62,000 BTC, worth about $7 billion, have moved out of long-term, inactive wallets since mid-October. This is the first time in the second half of 2025 that Bitcoin’s long-term holdings have seen a noticeable drop.

Illiquid supply basically means Bitcoin that stays untouched for a long time—coins held by people who rarely move or sell them. When this supply starts falling, it signals that more Bitcoin is being brought back into circulation. With more coins available to trade, prices can struggle to move higher unless fresh buying demand steps in.

Bitcoin’s price has fallen from its record high of over $125,000 in early October to around $113,550, according to data from CoinMarketCap. Glassnode wrote on X that “Illiquid $BTC supply has started to decline, with roughly 62,000 BTC moving out of long-term, inactive wallets since mid-October. When illiquid supply falls, more coins are available to trade, which can make it harder for price to trend without strong new demand.”

Breaking the bullish trend

Glassnode said this decline breaks the trend that supported much of Bitcoin’s bullish cycle. Similar pullbacks in the past have often cooled price momentum. For example, in January 2024, around 400,000 BTC left long-term wallets—a much bigger outflow that was followed by a slowdown in market activity.

But this time, not everyone is selling. Large investors, or whales, seem to be moving in the opposite direction. “What’s interesting is that whale wallets have actually been accumulating during this phase,” Glassnode said. Over the last 30 days, these wallets have increased their holdings and have not sold significantly since October 15.

Smaller wallets drive selling pressure

Glassnode’s data shows that wallets holding between 0.1 and 10 BTC, roughly $10,000 to $1 million in value, are the ones leading the selling activity. This group has been steadily reducing its holdings since November 2024.

“Momentum buyers have largely exited, while dip-buyers failed to step in with enough demand to absorb that supply,” Glassnode noted. “With first-time buyers flat, this imbalance is pressuring prices until stronger spot demand returns.”

Long-term scarcity still intact

A report by Fidelity Digital Assets maintains that Bitcoin’s long-term scarcity remains a strong narrative. It projects that by Q2 2032, about 42% of all Bitcoin, or 8.3 million BTC, will be considered illiquid if current patterns continue.

The report adds, “Over time, the scarcity of bitcoin may become the focal point as more entities buy and hold the asset long term.”

Bitcoin is currently trading around $113,000, up 3.5% in the past 24 hours, as traders watch whether new demand will return to support the next price move.

Also Read: Bitcoin Could Still Crash 50% Even With Wall Street Support: Tom Lee