Illiquid / Liquid Supply
Splits supply into illiquid (hodled or lost coins) and liquid (remainder). Rising illiquid supply marks strong accumulation.
What is it?
This metric divides Bitcoin supply into two categories. 'Illiquid' supply corresponds to coins held long-term or presumed lost (hodled or lost coins) - BTC that has not moved for a very long time. 'Liquid' supply is the complement: the difference between total circulating supply and illiquid coins. This ratio estimates the market's actual available 'float.'
How to read
The stacked area chart shows the distribution's evolution. An expansion of illiquid supply means coins are migrating to addresses that tend not to spend them - interpreted as accumulation. A contraction of illiquid supply (and expansion of liquid) indicates movement toward more active addresses - interpreted as potential distribution.
Key zones
Illiquid supply represents about 35-42% of total supply (7-8M BTC), with the remainder classified as liquid. Variations of 2-3% in these proportions represent movements of hundreds of thousands of BTC and are therefore highly significant. Illiquid supply peaks at bear market bottoms when accumulation is maximal.
What to observe
The speed of change is key. Rapid drainage of liquid to illiquid supply ('supply shock') has historically preceded significant price increases. The opposite - rapid passage from illiquid to liquid - has coincided with profit-taking phases. Compare with the Supply Shock Momentum Oscillator to measure the acceleration of these movements.
Historical context
Illiquid supply reached an all-time high in 2023, with over 15 million BTC classified as illiquid. This structural upward trend accelerated after spot ETF approval, which created a new type of quasi-permanent holding via institutional custodians. In parallel, supply on exchanges (highly liquid) has declined continuously since 2020.
Expert notes
The classification relies on the age of last coin movement (hodled or lost). Exchanges doing long-term cold storage appear as 'illiquid' even though those coins are technically available for sale. Conversely, HODLers who regularly consolidate their UTXOs temporarily exit the illiquid supply. The metric is more reliable in trend than in absolute level. Combine with the Supply Shock Momentum Oscillator for a dynamic reading.
Common mistakes to avoid
'Illiquid' does not mean 'will never be sold.' It is a classification based on past holding duration - any address can change behaviour. Similarly, 'liquid' supply is not synonymous with 'imminent selling pressure' - it includes active coins that are not necessarily for sale.
Programmatic access
REST API
curl -sS \
'https://api.trinityinsights.io/api/v1/onchain/illiquid-liquid-supply/history?days=90' \
-H 'X-API-Key: $TRINITY_API_KEY'MCP server
{
"tool": "get_chart_value",
"metric_id": "illiquid-liquid-supply",
"timeframe": "1y"
}Required tier: pro. See the pricing grid for the tier list and the MCP documentation for multi-client configuration.
Related metrics
Institutional disclaimer
Trinity Insights is an educational and analytical tool. The metric above does not constitute investment advice. Trinity Insights is not a Crypto-Asset Service Provider (CASP) registered under MiCA Regulation (EU) 2023/1114. See the full disclaimer.