Bitcoin held by illiquid entities is at an all-time high as demand for the token climbs

• The total held by illiquid entities, or those with little-to-no spending history, hit a record high 15,207,843 tokens.
• Bitcoin climbed 9% Wednesday, and the illiquid supply change data suggests high demand.

The total amount of bitcoin held by illiquid entities, or those with little-to-no spending history, is at an all-time high, according to Glassnode data cited by CoinDesk.

The total amount held by these illiquid entities is now at a record 15,207,843 tokens. In the last four weeks, it jumped by 215,000, per CoinDesk, which suggests surging demand for the world's largest cryptocurrency.

The volume of flows into illiquid entities is "supporting the case for a gradual and steady accumulation taking place," Glassnode analyst James Check wrote in a note Monday, adding that the data points to an "undercurrent of demand."

One reason behind the renewed investor enthusiasm is the prospect of greater institutional adoption.

Earlier this week, BlackRock submitted an application for a spot bitcoin ETF, which would allow investors to gain exposure to the token without owning the asset. WisdomTree and others, too, have filed applications for bitcoin ETFs recently.

Still, the digital asset market has seen it's share of turmoil. Earlier in June, the Securities and Exchange Commission filed lawsuits against both Coinbase and Binance, accusing each of listing cryptocurrencies as unregistered securities.

Meanwhile, the Federal Reserve is expected to hike rates further later this year, potentially adding more pressure on crypto prices.

Bitcoin jumped 9% Wednesday to climb back above $30,000, reaching the highest level in more than a month. It's up more than 80% in 2023.