A recent report by Fidelity Digital Assets raises important questions about the state and structure of Bitcoin supply. The analysis suggests that a significant portion of Bitcoin may become unavailable for trading by 2025.
Trends in Bitcoin Illiquidity
The research identifies two cohorts defining the threshold of illiquid supply: 1) entities holding Bitcoin that has not moved in over seven years, and 2) public companies holding at least 1,000 BTC.
The report states, "We estimate that this combined group will hold over six million Bitcoin by the end of 2025 — or over 28% of the 21 million Bitcoin that will ever exist."
Current Bitcoin Market Status
Public companies currently hold more than 830,000 BTC, representing 4% of the circulating supply, with 97% concentrated among companies holding over 1,000 units. Combining long-term holders with public company holdings shows an accelerating trend toward holding Bitcoin rather than trading it.
Future Predictions
The report predicts that nearly 42% of the current circulating supply, or over 8.3 million BTC, will be considered illiquid by 2032. The researcher concluded that over time, Bitcoin's scarcity may become a focal point as more entities buy and hold the asset long-term.
The Fidelity report highlights the growing trend of Bitcoin accumulation, which could significantly impact their availability and value in the future.
