Bitcoin illiquid supply declines as 62,000 BTC moves out of long-term holder wallets: Glassnode

About $7 billion worth of Bitcoin has moved out of long-term holder wallets since mid-October, according to Glassnode data, decreasing BTC's illiquid supply and potentially making it harder for a price rally to catch momentum. 

About 62,000 BTC has moved out of long-term, inactive wallets since mid-October, according to Glassnode, the first significant decline in the second half of 2025. Bitcoin's price has declined in recent weeks from its all-time high price over $125,000, achieved in early October, and currently trades around $113,550, according to The Block's Bitcoin Price page. 

"What's interesting is that whale wallets have actually been accumulating during this phase," Glassnode wrote on X. "Over the last 30 days, whale wallets have grown their holdings, and since October 15th, they haven't largely sold their positions."

Glassnode also noted that wallets holding about $10,000 to $1,000,000 worth of BTC have shown the largest outflows, with consistent selling since November of last year. "Momentum buyers have largely exited, while dip-buyers failed to step in with enough demand to absorb that supply," Glassnode wrote. "With first-time buyers flat, this imbalance is pressuring prices until stronger spot demand returns."

Bitcoin's declining price coincides with a similar dip in the percentage of circulating BTC in profit, according to The Block's data. About 82.3% of the supply is currently in profit, up from a year-to-date low of 76.0% in April. 

A recent report from Fidelity Digital Assets evaluated Bitcoin's illiquid supply, estimating that nearly 42% of all supply, about 8.3 million BTC, will be considered illiquid by Q2 2032 if current trends hold. 

"Over time, the scarcity of bitcoin may become the focal point as more entities buy and hold the asset long term," the report states. "If nation-state adoption increases and the regulatory environment surrounding bitcoin continues to evolve, the growth of the illiquid supply could be even more dramatic." 

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