Definition ∞ BTC illiquid supply represents the quantity of Bitcoin held in wallets that exhibit minimal historical spending activity. These holdings are typically associated with long-term investors who intend to retain their assets for extended periods. A rising illiquid supply suggests a reduction in available Bitcoin for immediate sale on exchanges. This metric indicates a strong conviction among a segment of the holder base.
Context ∞ The growth or contraction of BTC illiquid supply provides a significant on-chain signal for market analysts and is frequently cited in crypto news. An expanding illiquid supply often correlates with periods of price strength or market bottoms, indicating accumulation. Conversely, a decline can suggest a shift towards distribution and potential selling pressure, offering valuable market context.
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