Shocking Record: 72% of Bitcoin Supply Now Illiquid — What Happens at $117K?

Sean Williams
Bitcoin (BTC)

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  • BTC illiquid supply reaches 14.3M, with 72% locked by long-term holders.
  • $10B in shorts could be liquidated if BTC hits $117K.
  • Accumulation trends signal potential for a major price surge.

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    Bitcoin (BTC) continues to trade in the $110,000 range, creating what many investors see as a golden opportunity to accumulate the leading cryptocurrency before it reaches new all-time highs (ATH). Analysts report that Bitcoin’s illiquid supply has reached a record 14.3 million BTC, with 72% of the total supply now locked by long-term holders. Meanwhile, $10 billion worth of BTC shorts could be liquidated if the price climbs back to $117,000, signaling a potentially explosive market move.

    Bitcoin Illiquid Supply Surges Amid ETF Demand

    The BTC illiquid supply has grown dramatically during this bull cycle, driven by increasing demand from whales and institutional investors. The success of Bitcoin ETFs, especially those backed by major firms like BlackRock, has intensified accumulation strategies, pushing long-term holders to secure BTC rather than spend or sell. With nearly 20 million out of the total 21 million BTC already mined, the race to accumulate more BTC is accelerating, creating expectations for a potential supply shock later this cycle.

    Analysts highlight that this unprecedented level of BTC accumulation reflects growing confidence in Bitcoin as “digital gold,” a key asset expected to rival traditional gold as a store of value. The trend shows both small and mid-sized investors following the lead of whales, further tightening available BTC supply and driving anticipation for a price surge.

    $10 Billion in Shorts: A Powder Keg Waiting to Explode

    Alongside the record illiquid supply, analysts are closely monitoring $10 billion worth of Bitcoin shorts poised for liquidation if BTC reaches $117,000. Market experts describe this scenario as a “powder keg waiting for a spark,” suggesting that even modest upward price movements could trigger a short squeeze, leading to rapid price acceleration.

    Also Read: Bitcoin Holds $111K Ahead of Fed Rate Cut: Key Levels and Market Outlook

    The current market sentiment hints that longs have recently absorbed losses, while short positions now face heightened risk. If BTC breaks into the $117,000 zone, it may not just be a breakout—it could be a “full-blown detonation,” balancing the market and potentially paving the way for a new upward trend.

    A Pivotal Moment for BTC Investors

    Bitcoin’s current accumulation patterns and looming short liquidation point to a critical juncture for investors. With illiquid supply at record highs and $10 billion in shorts at risk, BTC may be poised for a major price movement. For long-term holders and new buyers, this represents a strategic opportunity to secure Bitcoin before the market reacts.

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    Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses

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