The latest data from ETC Group and Glassnode reveals that illiquid entities now own 14.61 million BTC, worth over $826 million at current prices, equating to 74% of the cryptocurrency's total circulating supply of 19.75 million. This new high is a sign that the halving-induced supply shock is intensifying, which could provide an increasing tailwind for Bitcoin and other crypto assets over the coming months.

Glassnode identifies illiquid entities based on the ratio of cumulative outflows and inflows over the entity's lifespan. Increasing BTC scarcity in the market means a pick-up in demand could have an outsized bullish impact on the cryptocurrency's going market rate, which is currently around $56,600.

André Dragosch, head of research at ETC Group, commented that "Bitcoin's illiquid supply reached a new all-time high of almost 74% of circulating supply according to data provided by Glassnode, signaling that the Halving-induced supply shock is actually intensifying. This should provide an increasing tailwind for Bitcoin and other crypto assets over the coming months."

Source: https://www.coindesk.com/markets/2024/09/04/illiquid-bitcoin-entities-now-control-record-74-of-btcs-circulating-supply/

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