Glassnode: "Diamond Hands" BTC holdings reduction causing price surge to face greater resistance, current buy-the-dip funds unable to generate sufficient demand to absorb selling pressure."

On October 25th, Glassnode announced on social media that the illiquid Bitcoin supply has begun to decline. Since mid-October, approximately 62,000 BTC have moved out of long-term dormant wallets. As the illiquid supply decreases, more tokens will enter the circulation market. If there is a lack of strong additional demand, the price uptrend will encounter greater resistance. In this cycle, the illiquid supply was originally an important driving force. However, a recent reversal has broken this trend. Historically, similar supply return phenomena have often weakened market momentum. An even larger-scale outflow of 400,000 BTC occurred in January 2024. Although the current change is relatively moderate, the trend is worthy of monitoring. Interestingly, whale wallets have continued to accumulate during this period. Whale holdings have steadily increased in the past 30 days, and there have been no significant sell-offs since October 15th. The most massive outflows have mainly come from wallets holding 0.1-10 BTC (equivalent to $10,000 to $1 million in assets). This group has maintained a net selling trend since November 2024. Momentum traders have essentially exited, and bottom-fishing funds have not been able to generate enough demand to absorb the selling pressure. With initial buyers remaining on the sidelines, this supply-demand imbalance will continue to suppress prices until stronger spot demand emerges.