Analysts from onchain analytical company Glassnode have reported that they have data that suggests that although the demand for bitcoin has seen an increase in recent weeks, the actually share of potentially available bitcoin that is available on the market to purchase could be as little as 22% of circulated tokens.
Looking at data taken from the blockchain, Glassnode revealed that their finds showed that as much as 78% of all available bitcoin are sitting dormant with investors, meaning that they are not showing signs of being sold and instead remain to be held within the wallets of the holding individual or institutions.
This means that the increase in visibility of the token within the recent month, relating to the growth and continuing upward trend of pricing, is allowing anyone looking to purchase some of the cryptocurrency the chance to be able to only purchase a share of a potential 4.2 million bitcoins (22%) that are being classified as liquid.
Sharing their findings on social networking site Twitter, Glassnode revealed “78% of circulating bitcoin supply is illiquid and therefore hardly accessible for buying. This points to a bullish investor sentiment as a large amount of BTC are being hoarded – which reduced sell pressure”.
Revealing that the new bullish behaviour of the market and increasing prices has seen 2020 secure an additional 1 million bitcoin within accounts that have proven to be illiquid, that means that investors buying up tradeable coins is reducing the availability of liquid tokens as investors are “hodling” their investment.
Which exchanges hold the most bitcoin?
Coinbase continue to be at the forefront of the exchanges holding bitcoin on hand, with a reported 870,000 BTC, followed by Huobi (252k BTC), Binance (215k BTC), Bitfinex (142k BTC), and Kraken (137k BTC).