Bitcoin Becomes Scarce: 14 Million Btc No Longer Sellable

Bitcoin Becoming Scarce: 14 Million Btc No Longer Sellable

17 May 2025 at 15: 27

Reading time: 2 minutes

New data reveals an interesting phenomenon: more and more Bitcoin are classified as “illiquid.” This means that the ratio of purchases to sales is below a certain threshold. When an entity is buying significantly more Bitcoin than it is selling, this often indicates a long-term investment.

Currently, Bitcoin’s illiquid supply has risen to a whopping 14 million units, a record high for this bull market. This is an encouraging sign, as it suggests that more and more Bitcoin is ending up in the hands of individuals or entities that have no intention of selling anytime soon. Of course, any willingness to sell comes at a price, so we should continue to monitor developments.

Liquidity refers to the extent to which an entity is putting the Bitcoin it receives into the market. Illiquid entities accumulate coins in anticipation of a sustained increase in the price of Bitcoin. This week, the illiquid supply reached a record 14 million Bitcoins, and the 30-day moving average showed an increase of 180.000 BTC, the biggest jump since December 2022. This period also marked the end of a severe bear market, during which Bitcoin's price fell 77% to just above $15.000.

A notable development in the current market cycle is the increased influence of large investors, the so-called “whales”. In the past, Bitcoin was mainly in the hands of private individuals, but that dynamic is changing rapidly. Large corporations are now buying Bitcoin by the millions, and Bitcoin ETFs are also contributing to the demand.

It is notable that individuals have been dumping their Bitcoin over the past month, while whales and smaller investors (so-called “sharks”) have been actively buying. This shows an intriguing pattern that could be decisive for the future of the crypto market.

A fascination with the digital currency continues and developments around liquidity and investor strategies offer fascinating insights into this ever-evolving world of cryptocurrency.

Frequently Asked Questions

What does it mean when Bitcoin is classified as “illiquid”?
An entity is considered illiquid when it buys more Bitcoin than it sells, indicating a long-term investment. This may indicate that these investors expect the value of Bitcoin to increase in the future.

Why is the increase in illiquid inventory important?
The increase in the illiquid supply to 14 million Bitcoin is a record high and means that more Bitcoin is ending up in the hands of people or organizations that do not plan to sell anytime soon. This could indicate greater demand in the future and potential upward price movement.

How Do Big Investors Influence the Bitcoin Market?
Large investors, or “whales,” are increasingly influencing Bitcoin’s price. While retail investors are selling their Bitcoin, these large entities are actively buying. This confidence from wealthy investors can positively influence the market and stimulate new price increases.

Share this article:

Disclaimer: The information on Block 9 is for general informational and educational purposes only. While we strive to provide up-to-date, correct and relevant content, we make no warranties as to the completeness, accuracy or reliability of the information provided. All content on this website, including articles, analyses, opinions and other publications, is for general information purposes only and does not constitute professional or legal advice in any way, including but not limited to financial, investment or tax advice.

Block 9 makes no guarantees or representations as to any possible results or returns that may arise from the use of information on this website. Nothing on this website should be interpreted as a recommendation to buy, sell or hold any particular asset, including but not limited to cryptocurrencies, tokens or other financial instruments.

The opinions and views expressed in contributions by editors, external authors or community members are strictly personal and do not necessarily represent the views or policies of Block 9 as a platform. Block 9 accepts no liability for any loss or damage – direct or indirect – resulting from the use of (or reliance on) the information published on this website.

Investing in cryptocurrencies and other digital assets involves significant risks. The value of such assets can fluctuate significantly, and there is a chance that you could lose (some of) your investment. We strongly recommend that you always do your own research (DYOR) and seek independent advice from a qualified financial advisor before making any financial decisions. By using this website, you agree to this disclaimer and accept that Block 9 is not responsible for your investment choices or the results thereof.