270 thousand more Bitcoins were removed from circulation

Bitcoin investors prefer to save their BTC savings for long-term accumulation, despite the rise in prices. 270 thousand BTC has been removed from circulation in the past 30 days.

According to data from crypto data collector Glassnode, 270 thousand BTC came out from “liquid” Bitcoin wallets during the month of January.

Bitcoin Price Index: 1 Bitcoin How Many TL? (BTC TL)

The monthly change of Bitcoin’s liquid supply. Source: Glassnode

New data reveal that Bitcoin’s (BTC) liquid supply has steadily dropped over the past nine months, with the liquid supply currently standing at 21.3 percent, with no signs of change.

The gradual decrease in Bitcoin’s liquid supply could be a good sign for the price of the coin. The demand for supply from both new individual investors and institutions is increasing. Glassnode estimates that about 80 percent of the 18.6 million Bitcoin supply in circulation is stored in “illiquid wallets.”

According to Glassnode, a Bitcoin wallet is considered illiquid if it carries less than 25 percent of the BTC transferred to it during the wallet’s existence.

Bitcoin liquidity supply. Source: Glassnode

Of the 3.9 million BTC classified by Glassnode as “highly liquid”, 61 percent, or 2.38 million, is held by central exchanges. Exchanges’ reserves have also declined by 13.8 percent since July, according to data from analyst firm CryptoQuant.

Increased institutional investments can be a major factor in the decrease in Bitcoin’s liquid supply. According to data from the IBalina tracking service Bitcoin Treasuries, 33 institutional entities hold 6.5 percent of Bitcoin’s circulating supply, 1.2 million BTC.

Grayscale has also recently increased its Bitcoin savings by approximately 25 thousand BTC. The investor giant holds 641,523 BTC as of January 20, 2021. Miners produce around 900 Bitcoins every day. According to Glassnode data, only a third of this amount is sent to exchanges.

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