Quick Takeaways
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Illiquid Supply Surge: Researchers predict that 28% of total Bitcoin supply (6 million BTC) will be held by long-term holders and public companies by 2025, marking a trend towards scarcity.
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Public Company Accumulation: Over 830,000 BTC is currently held by public companies, primarily concentrated among those owning 1,000 BTC or more, significantly increasing Bitcoin’s illiquid supply.
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Future Projections: By 2032, nearly 42% of circulating Bitcoin (over 8.3 million BTC) could be considered illiquid, shifting market dynamics as more entities adopt long-term holding strategies.
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Price Trends: Bitcoin’s recent price fluctuation sees it stabilizing around $115,000 after a peak of $116,700, remaining below its all-time high, suggesting ongoing consolidation.
28% of Bitcoin Supply May Be Locked Up by End of 2025: Fidelity Report
A recent report from Fidelity Digital Assets sheds light on the future of Bitcoin. Analyst Zack Wainwright emphasizes that 28% of Bitcoin’s total supply could become illiquid by the end of 2025. This finding points to a major shift in the Bitcoin market, moving towards scarcity.
The report defines “illiquid supply” as Bitcoin held for over seven years or in public company treasuries. Wainwright estimates that entities fitting this profile will possess over six million Bitcoin by 2025, highlighting an increasing trend in long-term holding.
Currently, public companies hold over 830,000 BTC, representing approximately 4% of Bitcoin’s circulating supply. Companies with more than 1,000 BTC own 97% of this total. The concept of Bitcoin as a store of value is gaining momentum, which may further limit available supply.
In addition, the report predicts that by 2032, nearly 42% of circulating Bitcoin could be considered illiquid. Such scarcity could attract more institutional investors and even nation-states. As a result, Bitcoin’s reputation as a digital asset may strengthen.
Outside of Bitcoin, Ethereum also appears to be experiencing a similar trend. Digital asset treasuries have rapidly accumulated Ether, contributing to its diminishing available supply. As both currencies find their place in corporate and governmental strategies, they may increasingly appeal to a broader audience.
Despite this positive outlook, Bitcoin’s price has seen fluctuations. Recently, it fell from $116,700 to just above $115,000, remaining 7.2% below its all-time high. However, these price movements reflect typical market dynamics, as the asset continues to attract attention.
In the evolving landscape of cryptocurrency, Fidelity’s report underscores the growing importance of long-term holding strategies. This trend may shape the development of new technologies and innovations in the digital financial world.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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