Less than 4 million Bitcoins available for buying

Bitcoin traded at $38,371.01 with a daily trading volume of $63.1 billion and is down 0.62% for the day.

The market liquidity is tightening in the Bitcoin market, as there are less than 4 million BTCs in circulation available for upcoming investors including the likes of Paypal, Square, hedge funds, and so on.

By Olumide Adesina

According to Yann & Jan:

“Float in the network is drying up faster than ever.

“Currently, about 78% of issued bitcoin’s are either lost or being hodled, leaving less than 4 million bitcoins to be shared amongst future market entrants (incl. Paypal, Square, SP500 Companies, ETF’s, etc).”

Float in the network is drying up faster than ever.

Currently about 78% of issued $bitcoin’s are either lost or being hodled, leaving less than 4M bitcoins to be shared amongst future market entrants (incl. Paypal, Square, SP500 Companies, ETF’s, etc). pic.twitter.com/hCtEqQOEEl

— Yann & Jan (@Negentropic_) February 5, 2021

The data from Glassnode explained the rationale for such difficulty in purchasing the most popular crypto asset.

“It is estimated that only 4.2M BTC or 22% of the total supply of BTC is in constant circulation and available for buying and selling. In other words, 78% of the circulating supply of BTC is considered illiquid.”

At press time, Bitcoin traded at $38,371.01 with a daily trading volume of $63.1 billion and is down 0.62% for the day.

What you need to know

Only 21 million BTCs are ever going to be produced in total, and presently, there are about 18.9 million BTCs in circulation.

• This shows a differential of about 2.1 million BTCs that are left to be produced, not forgetting about 4.5 million Bitcoins that have already been lost forever.
• This also means that liquidity is drying up, as demand for the world’s most popular crypto hits record highs.

Glassnode also revealed that a million Bitcoins (BTC) or almost $30 billion in actual prices, disappeared from the liquid supply in 2020. This process even outperformed the inflow of new Bitcoins (BTC) into the network:

“Currently, we are at a stage in which the illiquid supply is growing more than the total circulating supply according to the report. A similar pattern presently played out again during the bullish rally of 2017.”