Fidelity Digital Assets reports growing Bitcoin scarcity as long-term holdings exceed new daily issuance following the April 2024 halving.
Market Overview
According to Fidelity Digital Assets, the amount of Bitcoin held for over ten years has surpassed the amount of new daily issuance, signaling rising scarcity after the April 2024 halving.
Issues and Implications
Fidelity emphasizes the historic nature of this trend, noting that an average of 566 Bitcoin per day is moving into long-term holdings compared to the current daily rate of 450 Bitcoin. This shift in perception reinforces Bitcoin's status as a deflationary asset.
Future of Bitcoin
Despite a lack of direct governmental or regulatory statements regarding these changes, experts expect institutional investors to continue monitoring the situation. The evolution of long-term holdings may provide insight into future market behaviors.
Sustained investor interest coupled with a lack of regulatory responses may influence Bitcoin’s market development in the future. The current situation is reminiscent of prior halving-related events and may signal potential investment shifts and asset strengthening in the long term.
