Key Takeaways
Why is Bitcoin under pressure?
Bitcoin’s Illiquid Supply dropped by about 62,000 BTC in October as long-held coins moved into circulation.
What could support BTC’s price near term?
30-Day Whale Inflows/Outflows showed a 16,300 BTC net accumulation, suggesting whales are quietly absorbing supply despite weaker demand elsewhere.
Bitcoin [BTC] continued to hover around the $111,000 level. Although it closed above this mark for the third consecutive session, selling pressure has kept upside momentum limited.
Market data suggested that an expanding circulating supply and weakening demand continued to weigh on sentiment and near-term price strength.
Illiquid supply weakens Bitcoin’s stamina
There has been a sharp decline in the amount of Bitcoin’s Illiquid Supply circulating in the market. Illiquid Bitcoin refers to coins that have remained unmoved in inactive long-term private wallets.
Since mid-October, this decline has become more pronounced, coinciding with a drop in the broader crypto market capitalization to around $3.45 trillion.
In fact, the metric slipped to 14.303 million BTC on the 23rd of October from 14.38 million earlier in October.
During this period, roughly 62,000 BTC—worth an estimated $6.8 billion—was added back into the market.
Source: Glassnode
Historically, such inflows have triggered price declines on multiple occasions. In January 2024, for instance, a 400,000 BTC increase in illiquid supply produced a similar weakening effect on Bitcoin’s price momentum.
Mid-size wallets drive selling pressure
The sharp rise in liquidity from previously Illiquid Supply was only one of several factors affecting Bitcoin’s bullish structure.
Glassnode data showed that addresses holding between 0.1 and 100 BTC—valued at roughly $10,000 to $7 million—added significant selling pressure to the market.
This selling behavior has remained a consistent trend among this group of investors for about a year.
Source: Glassnode
Buying momentum also slipped. First-time buyer supply contracted toward ~213,000 BTC, signaling lighter new participation.
Additionally, momentum buyers—who typically drive short-term rallies—exited the market, according to chart details.
This suggested that while buyers were retreating, sellers continued to exert pressure, contributing to the broader stagnation in market activity.
Can whales hold the line?
Despite the market thinning out, Bitcoin whale wallets have continued to accumulate the asset. This accumulation trend has persisted even during the market decline throughout October.
In the past 30 days, total whale holdings have risen notably, reflecting a degree of confidence among large holders. However, their overall position in the market remains relatively small—totaling around 16,300 BTC.
Source: Glassnode
When compared to the large volume of Bitcoin re-entering circulation from illiquid wallets, alongside the persistent selling pressure from investors holding between 0.1 and 100 BTC, it appears that downward pressure could remain dominant in the near term.
