According to recent research by Fidelity Digital Assets, 17% of all Bitcoin is considered 'ancient supply', meaning it has not been used for more than ten years. This creates a new scarcity and alters Bitcoin's economic model.
Overview of Ancient Bitcoin Supply
Current data shows that approximately 3.4 million Bitcoins, worth over $360 billion, qualify as ancient supply. An average of 566 BTC per day is entering this category, significantly exceeding the current daily mining issuance of 450 BTC.
Impact of Institutional Accumulation on the Market
There are over 27 public companies that collectively hold more than 800,000 BTC, representing a significant portion of the circulating supply that is unlikely to return to the market in the near term. This accumulation among institutional investors, especially in light of the upcoming 2024 halving, reinforces the ancient supply.
Future of Bitcoin: Projections and Risks
Fidelity projects that by 2035, the ancient supply could exceed 30% of Bitcoin's total float, creating conditions for extreme scarcity. The concentration of holdings among large investors could lead to volatility and risks of market manipulation.
The ancient Bitcoin supply represents both opportunities and risks for the cryptocurrency ecosystem. Understanding these dynamics is crucial for investors and regulators as Bitcoin evolves from experimental digital cash to an institutional asset.
