Catenaa, Monday, October 27, 2025- Bitcoin’s illiquid supply fell by about 62,000 BTC, worth roughly $7 billion, as long-term holder wallets began moving funds since mid-October, according to Glassnode data.
The outflows mark the first notable decline in illiquid holdings during the second half of 2025.
Bitcoin’s price has fallen from its early-October peak above $125,000 to around $113,550, with increased liquid supply potentially limiting upward momentum without strong external demand.
Glassnode reported that whale wallets have largely accumulated BTC during this period, while mid-sized holders, those with $10,000 to $1 million in BTC, have driven most of the outflows. Momentum buyers exited, and first-time buyers failed to absorb the excess supply, pressuring prices.
The decline in illiquid supply coincides with a dip in the percentage of circulating BTC currently in profit, which stands at 82.3% after hitting a year-to-date low of 76% in April.
Analysts noted that a continued growth in long-term holdings could reinforce scarcity over time, especially if nation-states and institutional investors increase adoption.
A Fidelity Digital Assets report projected that nearly 42% of Bitcoin’s total supply, approximately 8.3 million BTC, could be illiquid by 2032 if current trends continue.
The report suggested that scarcity may drive market dynamics as regulatory frameworks evolve and adoption expands.
About 62,000 BTC moved out of long-term wallets in mid-October, reducing illiquid supply and limiting Bitcoin’s price rally potential without stronger market demand.
