A new report by Glassnode seem to indicate that 78% of bitcoin is illiquid and out of the market for buying, further cutting out the number of bitcoins available.
According to findings published by blockchain analysis company, Glassnode, only 4.2 million Bitcoin (22%) are currently available to buy and sell.
According to Glassnode:
“If many bitcoins are illiquid, a supply-side crisis emerges—which has a weakening effect on BTC’s selling pressure in the market. Or put differently: A sustained rise of illiquid bitcoins is an indication of strong investor hodling sentiment and a potentially bullish signal.”
More than one million bitcoin have become illiquid in 2020 alone, and going by the report, Bitcoin liquidity and the price of the currency go hand in hand.