A recently released report highlights significant changes in Bitcoin supply, particularly regarding the amount of Bitcoin held dormant.
Change in Bitcoin Supply Dynamics
For the first time in Bitcoin's history, the amount of BTC held dormant for more than 10 years is growing faster than the network is producing new coins. According to a report by Fidelity Digital Assets on June 18, post-halving in April 2024, the daily issuance rate of Bitcoin fell to 450 BTC, while an average of 566 BTC per day is moving into the ‘ancient supply’ category.
Impact of Long-term Holders
Factors contributing to this growth can vary from price conviction to loss of wallet access. Over 3.4 million BTC, more than 17% of total supply, haven’t moved for at least a decade. This trend is redefining Bitcoin's scarcity narrative in real time.
Market Prospects for Bitcoin
Organizations are increasingly accumulating BTC, with 27 public companies currently holding over 800,000 BTC collectively. Projections suggest ancient supply could account for 30% of all Bitcoin by 2035. However, volatility is also present: 39% of days for holders of five years or more show net outflows.
In conclusion, while Bitcoin's scarcity may impact its price, it is crucial to consider other market factors, including demand from institutional investors and ETFs.
