According to Crypto Rover, the illiquid supply of Bitcoin has reached unprecedented highs, signaling a significant decrease in coins available for trading on the market (source: @rovercrc, May 17, 2025). This surge in illiquid supply suggests that more investors are holding their Bitcoin off exchanges, increasing the likelihood of a supply shock. For traders, this could lead to heightened volatility and potential upward price pressure in the short term, making it crucial to monitor on-chain supply metrics and exchange reserves for entry and exit timing.

According to Ki Young Ju on Twitter, Bitcoin is experiencing accelerated deflation as MicroStrategy accumulates BTC at a rate faster than new coins are mined. With 555,000 BTC now considered illiquid and no plans for sale, MicroStrategy's holdings alone account for a -2.23% annual deflation rate. This deflationary trend is likely even stronger when factoring in other stable institutional holders, further limiting available supply and potentially influencing upward price momentum for traders. Source: Ki Young Ju (@ki_young_ju), May 10, 2025.