The cryptocurrency market is abuzz with discussions about a potential itcoin">Bitcoin supply crunch. According to a recent report, approximately 1.8 million itcoin">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 itcoin">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 itcoin">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 itcoin">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 itcoin">Bitcoin exchange-traded funds.
As itcoin">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.
