Only a quarter of Bitcoin liquidised

Only a quarter of Bitcoin is liquidised says a report by Glassnode. The rest three quarters are in a state of ‘illiquidity’. Let’s find more about this.

Introduction

Glassnode, a leading analyst in Crypto analyst has published a report on the liquidity of Bitcoin across various wallets. The report made an observation that only 24% of Bitcoin’s circulating supply is currently liquid. Being liquid means that these coins are in active circulation. Implying that they are traded and spent across various platforms for goods and services.

However, this also means that the other 76% of the token is in wallet accounts with absolutely no history of expenditure.

The report by Glassnode

The report by Glassnode reveals some information about the liquidity of Bitcoin. “We can see that over the final months of 2021, even as prices corrected, there has been an acceleration of coins from Liquid, into Illiquid wallets,” said the report.

Consequently, as of now, only 24 per cent of all of Bitcoin’s supply is in liquidated circulation. This is from the wallets that are actively using these tokens for crypto trade or purchasing goods.

Reports by CoinMarketCap

Another crypto analysis website CoinMarketCap reported that Bitcoin’s liquidity is quite low. The website reported that about 40,049,185 Cryptocurrency wallets currently have Bitcoins. However, out of these Wallets, only 963,625 are presently active. According to this figure only 24.06% wallets are presently active.

Further information by Glassnode

The report further states the nature of investors investing in Bitcoin. In fact, the report implies that Bitcoin investors are keen in investing Bitcoin for the long run and holding it. They are not in favour of spending the token, in fact, they’re accumulating these.

“Through December, coins moved to increasingly illiquid wallets at a rate of between 50,000 and 100,000 Bitcoin per month reflecting a higher likelihood of broader accumulation,” added the report.

Conclusion

Only a quarter of Bitcoin is liquidised says a report by Glassnode. The rest three quarters are in a state of ‘illiquidity’. This reveals the atmosphere about the views of Investors. The views that look at Bitcoin as a long term investment rather than as a means of exchange.

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