Recently, there has been a notable growth in the ancient supply of Bitcoin, exceeding 3.4 million BTC. This phenomenon has potential implications for market dynamics and investment behavior.
Definition of Ancient Bitcoin Supply
Ancient Bitcoin supply refers to coins that have not moved for over a decade. Currently, about 17% of the total Bitcoin supply falls into this category. A study by Fidelity Digital Assets indicates that an average of 566 BTC enters the ancient supply category daily.
Trends in Supply Movements
After the 2024 halving, there has been a rise in the ancient supply. However, since the 2024 U.S. elections, movements in supply have become more frequent, suggesting activity among long-term holders. Research has shown that up to 39% of five-year holders' supply has decreased in recent months.
Market Impact and Future Outlook
The growth of the ancient supply may negatively impact price while reinforcing scarcity arguments for Bitcoin. It is expected that long-term holding will become more common as institutional investments in digital assets rise. This unique attribute of Bitcoin may play a significant role during times of increasing demand.
The dynamics of ancient Bitcoin supply movements have exhibited trends that may influence the market in the future. The rising number of coins in ancient supply and the behavior of long-term holders warrant careful examination by investors.
