Bitcoin Supply Dynamics Shift as Ancient Holdings Grow
- The number of Bitcoin held for over ten years is increasing by 550 BTC per day, surpassing the daily issuance of new coins at 450 BTC.
- Currently, over 17% of Bitcoin supply is considered illiquid, with projections indicating this could rise to up to 30% by the year after next.
- Institutional inflows into Bitcoin are projected to reach $120 billion by next year and $300 billion the following year, potentially tightening liquidity further.
The increasing accumulation of Bitcoin by long-term holders and institutional investors suggests a potential supply squeeze. As more Bitcoin becomes illiquid, the available supply diminishes, which could impact market dynamics significantly.
With ancient holdings growing faster than new coin issuance and institutional investments rising sharply, Bitcoin’s supply is becoming increasingly scarce. This trend underscores a significant shift in the cryptocurrency’s market landscape. Source
