Bitcoin Faces Selling Pressure from Illiquid Supply, Yet Whale Accumulation Could Provide Near-Term Support

Bitcoins price faces pressure in late October 2025 due to a decline in illiquid supply, releasing approximately 62,000 BTC worth $6.8 billion into circulation. This influx, combined with outflows from mid-sized holders, has expanded available supply while demand weakens, limiting upside near $111,000.

• Illiquid supply drop: Bitcoins illiquid holdings fell to 14.303 million BTC from 14.38 million, adding liquidity and selling pressure.
• Mid-sized wallets (0.1-100 BTC) have driven consistent outflows for a year, reducing buying momentum.
• Whale accumulation: Large holders added 16,300 BTC net over 30 days, offering potential support amid broader market stagnation.

What Is Bitcoin Illiquid Supply and Why Is It Declining？

Bitcoin illiquid supply consists of coins held in long-dormant wallets that have not moved for extended periods, representing holdings unlikely to enter active trading soon. In October 2025, this metric declined sharply by about 62,000 BTC, dropping from 14.38 million to 14.303 million BTC as of October 23. This shift coincides with a broader crypto market cap settling around $3.45 trillion, injecting an estimated $6.8 billion in value back into circulation and contributing to subdued price action above $111,000.

How Are Mid-Sized Wallets Contributing to Bitcoins Selling Pressure？

Mid-sized Bitcoin holders, those with addresses containing 0.1 to 100 BTC (approximately $10,000 to $7 million at current levels), have been a key source of ongoing selling in the market. Data from Glassnode indicates these wallets have maintained a pattern of net outflows for nearly a year, adding to the liquidity from illiquid supply and eroding bullish momentum. For instance, first-time buyer supply has contracted to around 213,000 BTC, reflecting reduced new entries, while momentum-driven purchases have also waned. This dynamic creates an imbalance where sellers dominate, leading to limited price gains despite three consecutive sessions closing above $111,000. Historically, similar patterns in early 2024 saw a 400,000 BTC illiquid supply increase correlate with weakened price trends, underscoring the impact of these holder behaviors on overall market sentiment.

Source: Glassnode

The interplay of these factors highlights a market where supply-side pressures from various holder segments are testing Bitcoins resilience. As circulating supply expands without corresponding demand growth, traders observe a consolidation phase, with potential for further downside if outflows persist.

Frequently Asked QuestionsWhat impact does declining illiquid supply have on Bitcoins price in 2025？

Declining Bitcoin illiquid supply releases long-held coins into active circulation, increasing available liquidity and often amplifying selling pressure. In October 2025, a 62,000 BTC drop equated to $6.8 billion added to the market, correlating with price stagnation around $111,000 as demand fails to absorb the influx effectively.

Are Bitcoin whales accumulating during recent market pressures？

Yes, Bitcoin whales—large holders with significant stakes—have shown net accumulation of 16,300 BTC over the past 30 days in October 2025, even as the broader market faces declines. This quiet buying amid thinning participation suggests confidence from major players, potentially providing a floor against further drops from mid-sized seller outflows.

Source: Glassnode

Key Takeaways

• Illiquid supply decline signals added liquidity: The drop of 62,000 BTC in October 2025 has expanded circulating supply, historically leading to price corrections by increasing selling opportunities.
• Mid-sized holders fuel outflows: Wallets holding 0.1-100 BTC continue a year-long trend of net selling, contracting buyer supply to 213,000 BTC and hindering rallies.
• Whale accumulation offers counterbalance: Net inflows of 16,300 BTC from large holders in 30 days indicate strategic buying, which could stabilize Bitcoin near $111,000 if demand rebounds.

Why Is Bitcoin Under Pressure and What Supports It Near Term？

Bitcoin remains under pressure primarily from the Bitcoin illiquid supply decline, which has flooded the market with previously dormant coins, alongside persistent selling from mid-sized wallets. However, Bitcoin whale accumulation provides a potential buffer, with 16,300 BTC net gains reflecting long-term confidence. As market capitalization holds at $3.45 trillion, monitoring these holder dynamics will be crucial; investors should watch for renewed demand to counter supply pressures and drive sustainable upside in the coming sessions.

Source: Glassnode

Overall, Bitcoin‘s current stance at $111,000 reflects a delicate balance between expanding supply and selective accumulation. Data from on-chain analytics, such as those provided by Glassnode, emphasize the role of holder behavior in dictating short-term trajectories. While historical precedents like the January 2024 illiquid supply surge warn of volatility, the ongoing whale engagement hints at underlying strength. Market participants are advised to track these metrics closely, as shifts in illiquid supply or whale positions could signal the next directional move in Bitcoin’s price. This analysis draws on established on-chain indicators to offer a clear view of the forces at play, underscoring the importance of supply-demand equilibrium in cryptocurrency valuation.

Conclusion

In summary, the Bitcoin illiquid supply decline in October 2025, coupled with mid-sized wallet outflows, has intensified selling pressures, keeping prices range-bound near $111,000 amid a $3.45 trillion crypto market. Yet, Bitcoin whale accumulation of 16,300 BTC provides a stabilizing force, suggesting potential resilience. Looking ahead, a return to stronger demand could alleviate these constraints, positioning Bitcoin for renewed growth—investors should remain vigilant on on-chain developments for timely insights.