Bitcoin Hits the $29, 000 All-Time High as 78% of Bitcoin Becomes Illiquid

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Bitcoin has crossed yet another all-time high just one day away from the end of 2020 breaking past $29,000, setting a new ATH of $29,321.

Once again, the bull run is almost entirely being driven by institutional investors.

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SEE ALSO: Bitcoin Surpasses Visa Market Cap as it Breaks the $25, 000 Milestone

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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.”

               – Glassnode

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.

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RECOMMENDED READING: The Total Cryptocurrency Market Cap Grew By More than 3.3x in 2020 Alone, Latest Report Shows

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