The Rise of Illiquid Bitcoin
Recent data reveals that over 14 million Bitcoin are now held in wallets with minimal spending activity, leaving only about 7 million BTC of the total 21 million supply actively traded. This trend highlights a growing preference among investors for long-term storage over short-term trading.
Key Insights:
- Illiquid supply surged from under 14 million BTC in December 2024 to 14.3 million BTC today.
- Demand for cold storage and self-custody solutions has skyrocketed.
- Investors are rapidly moving coins from exchanges to private wallets, a trend accelerating since late March.
👉 Explore secure cold storage options
Corporate Bitcoin Acquisitions Accelerate
In the past week alone, five major companies announced significant Bitcoin purchases:
| Company | BTC Purchased | USD Value | Total Holdings |
|------------------|--------------|----------------|----------------|
| ProCap BTC | 4,930 | $515 million | N/A |
| Strategy | 245 | $1 billion* | N/A |
| Méliuz S.A. | 275 | N/A | 596 BTC |
| Metaplanet | 1,234 | $132 million | 12,345 BTC |
*Part of a larger $1 billion investment.
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Tightening Supply and Market Implications
With only one-third of Bitcoin’s supply remaining liquid, new buyers face increasing challenges sourcing coins:
- OTC desks and exchange inventories report thinner listings.
- Institutional demand may drive upward price pressure as scarcity grows.
- On-chain data confirms rising self-custody transfers, signaling strong holder conviction.
Price Forecasts and Expert Opinions
At Bitcoin Conference 2025, Eric Trump projected BTC could reach $170K by late 2026, citing doubling corporate adoption. However, market volatility remains a wildcard:
- Supply crunch + steady demand = potential price surge.
- Macro shocks or sell-offs could disrupt trends abruptly.
FAQs
Why are investors moving BTC to cold storage?
Cold storage reduces exposure to exchange hacks and aligns with long-term "HODL" strategies amid bullish sentiment.
How does illiquid supply affect Bitcoin’s price?
Scarcity of tradable BTC may intensify buying pressure, especially if institutional demand persists.
What’s driving corporate Bitcoin purchases?
Firms view BTC as a hedge against inflation and a strategic reserve asset, mirroring Tesla and MicroStrategy’s plays.
Conclusion
A record 14.35 million Bitcoin are now dormant, signaling unprecedented holder commitment. This supply squeeze, paired with institutional inflows, could fuel the next major rally. For investors, the message is clear: conviction is growing, and the long game reigns supreme.
Chart data sourced from TradingView; featured image via Unsplash.
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