Bitcoin Illiquid Supply Shatters Records as Whale Accumulation Intensifies

Bitcoin's illiquid supply just smashed through previous ceilings—hitting unprecedented levels while major players gobble up coins at a staggering pace.

The Great Hoard

Whales aren't just dipping toes; they're diving deep into accumulation mode. Supply that isn't moving—coins held in wallets with minimal outflow—has surged to an all-time high. That means fewer coins available for trading, and more being locked away in cold storage or long-term holdings.

Market Mechanics at Play

Scarcity drives value—it's Economics 101, even if traditional finance still struggles with the concept. Reduced liquid supply typically signals stronger holder conviction and potential upward price pressure. Meanwhile, Wall Street remains busy overcomplicating things with derivatives and debt.

Looking Ahead

Whether this is a prelude to another bull run or simply whales betting big on Bitcoin's long-term narrative, one thing's clear: the smart money isn't selling. They're stacking—while everyone else debates whether crypto is 'real' asset.

Long-term holders increase accumulation

The number of coins held for over seven years has surged by more than 422,000 since the start of the year.

This trend highlights a sustained accumulation among long-term holders (LTHs) and large investors, often referred to as whales.

Asset management firm Fidelity projects that LTHs and corporate treasuries could lock up over six million BTC by the end of 2025, further tightening supply. Fidelity stated:

“We estimate that this combined group will hold over six million BTC by the end of 2025—or over 28% of the 21 million Bitcoin that will ever exist.”

Institutional and corporate consolidation

Corporate strategic reserves and ETF issuers have increased their combined bitcoin holdings by 30% in 2025, now controlling 2.88 million BTC compared to 2.24 million at the start of the year.

This ongoing shift consolidates more of the total bitcoin supply into the hands of major institutional players.

Whales absorb new supply at record pace

Whales and sharks, holding 100–1,000+ BTC, are now absorbing nearly 300% of the annual mined supply.

Exchange balances are dropping rapidly, with the yearly absorption rate by exchanges plunging below -150%, reflecting a preference for self-custody and long-term holding.

This structural shift, paired with persistent ETF demand, has resulted in reduced BTC supply on exchanges, underpinning a long-term bullish sentiment among large holders.

Impact on market liquidity

With the illiquid supply at record levels and institutional accumulation intensifying, bitcoin’s available trading supply continues to dwindle.

This dynamic reduces sell-side pressure and signals increasing confidence among major holders in the asset’s long-term value.