4E: Declining Bitcoin illiquidity supply may suppress price rebound

On October 27th, according to 4E observations, SharpLink Gaming raised $76.5 million by selling stocks on October 17th and bought 19,271 ETH at an average price of $3,892. The company currently holds a total of 859,853 ETH, worth approximately $3.58 billion, with an average cost of $3,609 and a floating profit of around $480 million.

On the other hand, Glassnode data shows that since mid-October, about 62,000 BTC (around $7 billion) has flowed out of long-term inactive wallets, marking the largest scale in the second half of the year. The decrease in illiquid supply may weaken the upward momentum of Bitcoin prices. The report points out that while whales are still increasing their holdings, medium-sized holders continue to sell, weakening the buying momentum and insufficient spot demand may put pressure on prices.

In terms of market sentiment, BitMine Chairman Tom Lee stated that ETH is still in a "super cycle," with strong fundamentals for Ethereum. The demand for stablecoins and the increase in on-chain transaction volume may become the driving force for the next round of price increases.

In addition, Michael Saylor hinted in a post that Strategy may disclose Bitcoin holdings data next week; US Treasury Secretary Benson stated that the overall inflation rate in the US has decreased since Trump took office.

4E reminds investors: fund flows and on-chain supply and demand are reshaping market structures, with the strengthening of ETH fundamentals and the decrease in BTC liquidity showing differentiation. In the short term, attention should be paid to the continuity of whale holdings and institutional buying signals.