Glassnode: The reduction of BTC holdings by "diamond hands" poses greater resistance to price increases, as current bottom-fishing funds have failed to create sufficient demand to absorb selling pressure

ChainCatcher news, Glassnode posted on social media that the illiquid Bitcoin supply has begun to decline, with approximately 62,000 BTC moved from long-term dormant wallets since mid-October. When the illiquid supply decreases, more tokens will enter the circulating market, and if there is a lack of strong new demand, the upward price trend will face greater resistance.

In this cycle, the illiquid supply was an important driving force, but the recent reversal has broken this trend. Historically, similar supply backflows often weaken market momentum—there was a larger outflow of 400,000 BTC in January 2024, and although the current change is relatively mild, the trend is worth noting.

Interestingly, whale wallets have continued to accumulate during this period. Over the past 30 days, whale holdings have steadily increased, and there has been no large-scale selling since October 15. The ongoing largest outflows mainly come from wallets holding 0.1-10 BTC (approximately $10,000 to $1 million in assets). This group has maintained a net selling position since November 2024. Momentum traders have largely exited, while bottom-fishing funds have failed to create sufficient demand to absorb the selling pressure. As first-time buyers remain on the sidelines, this supply-demand imbalance will continue to suppress prices until stronger spot demand emerges.