Definition ∞ Illiquid BTC refers to Bitcoin (BTC) that is held in wallets or addresses and has not been moved for an extended period, indicating a strong propensity for long-term holding rather than active trading. This BTC is considered less available for immediate sale on exchanges, reducing the circulating supply accessible to market participants. It often signals investor conviction or lost access.
Context ∞ The metric of illiquid BTC is a key indicator for market analysts, often cited in news to assess long-term holder sentiment and potential supply shocks. An increasing amount of illiquid BTC suggests a reduced selling pressure and can be interpreted as a bullish signal for future price movements. Observing this trend helps market participants understand supply dynamics within the Bitcoin ecosystem.
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