A report by Fidelity indicates that a significant portion of Bitcoin's supply may become illiquid in the coming years, which could have major market implications.
Bitcoin Holder Groups
Fidelity identifies two groups whose supply could be considered illiquid: long-term Bitcoin holders and publicly traded companies with at least 1,000 BTC. These companies have been increasing their holdings this year.
2032 Bitcoin Outlook
Fidelity estimates that by 2032, 8.3 million BTC could become illiquid based on wallets holding BTC for at least seven years. This does not factor in potential supply shortages from public companies.
Impact of Whales on the Market
According to Fidelity, these groups combined hold Bitcoin worth $628 billion. This raises questions about potential market impacts if large holders decide to sell.
Thus, Fidelity's forecast regarding a significant increase in illiquid Bitcoin supply opens questions about future pricing and market dynamics. These changes could profoundly influence the current state and perception of Bitcoin as an asset.
