BTC liquidity falls to lowest level since 2018 as whales enter accumulation mode

Bitcoin liquidity has fallen to its lowest level since 2018 as large holders keep accumulating. This decline has deepened a squeeze that highlights how long-term holders are dominating the market.

BTC is already dealing with the high turbulence in the market. The cumulative digital assets market cap surged marginally on Friday to hover around $3.73 trillion. Its 24-hour trading volume dipped by 7% to stand at $156 billion.

However, the Fear and Greed index is flashing “Fear” sentiment among traders, and altcoins’ performance over the week reflects that.

Bitcoin scarcity deepens

As per the data, the available sell-side supply has dropped to roughly 3.12 million BTC. This marks a six-year low even as Bitcoin trades near $110k. Whale wallets linked to long-term investors have accumulated about 373,700 BTC over the last 30 days, it added. The surge in buying the dips highlights that the market remains in an accumulation phase. Many of the large holders are still positioning for a potential breakout later this year.

It added that the Liquidity Inventory Ratio (LIR) has fallen to 8.3 months. This suggests that the current liquidity would last less than nine months at the present pace of buying. It has emerged as a structure that often precedes major upside moves as scarcity begins to bite.

Bitcoin Market Faces Liquidity Squeeze as Accumulators Dominate

“Analytically, the decline in liquidity, coupled with increased demand from long-term holders, points to a favorable environment for price appreciation in the medium term” – By @ArabxChain pic.twitter.com/BOac4eGWQA

— CryptoQuant.com (@cryptoquant_com) October 24, 2025

Analysts are hinting that the combination of tightening liquidity and increasing long-term demand forms a bullish setup into the year’s end. If such accumulation continues and US ETF inflows strengthen, then Bitcoin could push past $115,000 in the fourth quarter. Bitcoin price has dropped by more than 3% in the last 30 days. It is trailing by over 12% from its all-time high (ATH) of $126K, recorded on October 7, 2025.

The market saw fresh volatility on Friday after US inflation data came in softer than expected. This move sent equities to record highs. Data shows that September’s Consumer Price Index rose 0.3% month-over-month versus forecasts of 0.4%, while annual inflation stood at 3.0%. Core CPI increased 0.2% on the month and 3.0% on the year, both slightly below expectations.

Bitcoin futures hit $543B

Binance’s latest data show that derivatives traders are piling back in as investors gear up for the next breakout. Total futures trading volume on the exchange surged to $2.002 trillion in October. It surpassed September’s $1.95 trillion. It added that Bitcoin futures alone made up $543.33 billion, or 27% of the platform’s overall activity. It was up from $418 billion in September. 

The figures reflect a strong resurgence of institutional and speculative trading. Volumes are staying well above the $2 trillion threshold that typically signals bullish momentum.

On the spot side, Bitcoin ETFs are showing signs of renewed demand. After a sharp $101.3 million outflow earlier in the week, inflows rebounded to $20.3 million on October 23. This was followed by a $477 million surge on October 21. BlackRock’s iShares Bitcoin Trust (IBIT) led with $107.8 million in inflows. It was followed by Fidelity’s FBTC with $7.2 million and Bitwise’s BITB with $17.4 million.

Not all funds fared equally, as Grayscale’s GBTC saw $60.5 million in redemptions, while Ark 21Shares’ ARKB lost $55 million.

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