Recently, there has been a significant rise in Bitcoin held for over 10 years. The increased pace of accumulation of old BTC may have implications for market dynamics.
Bitcoin Accumulation Trends
According to the Fidelity Digital Assets report, the number of Bitcoin held for more than 10 years is growing by 550 BTC per day, while new issuances are at 450 BTC. Currently, 17% of Bitcoin supply is considered illiquid, with projections suggesting it could reach 30% by 2026.
Price Prediction Scenarios
Reaching $1 million for Bitcoin would require a market capitalization of $21 trillion. Historical trends exhibit price rallies following halvings in 2013, 2017, and 2021. With ongoing accumulation by institutional investors, the liquidity in the market may further diminish.
Market Impact and Future Perspectives
Despite the observed liquidity shortage, risks associated with market volatility still exist. For instance, after the recent U.S. elections, the ancient Bitcoin supply decreased on 10% of days, indicating potential volatility among long-term holders.
The trends of ancient Bitcoin accumulation and institutional investments create a scenario of increasing scarcity. While reaching $1 million for Bitcoin is a significant target, current market signals may indicate its possibility.
