The cryptocurrency market is abuzz with discussions about a potential Bitcoin supply crunch. According to a recent report, approximately 1.8 million Bitcoins, valued at a staggering $121 billion, are held in wallets that have remained dormant for over a decade. This substantial amount accounts for 8.5% of Bitcoin’s circulating supply.
While the exact percentage of these coins that are permanently lost remains uncertain, analysts suggest the total dormant supply could stabilize at around 1.5 million Bitcoins. Interestingly, old wallets tend to become active at a predictable pace, with the majority being smaller wallets that go unnoticed.
The report highlights that there is no direct correlation between the reactivation of long-dormant wallets and significant price movements, contrary to speculations that holders might sell during rallies.
With over 68% of Bitcoin’s supply remaining inactive for more than a year, the limited availability on the market could potentially drive up demand and prices, especially given the recent approval of Bitcoin exchange-traded funds.
As Bitcoin continues to gain mainstream traction, the dynamics of its supply and growing demand will undoubtedly shape the future trajectory of the world’s largest cryptocurrency, currently trading at $64,810 on major exchanges.
