Bitcoin’s Dormant Supply Reaches $121 Billion, Chainalysis Report Reveals
A recent report from Fortune, referencing data from blockchain investigation firm Chainalysis, indicates that around 1.8 million BTC (approximately $121 billion) are being held in wallets that have been inactive for more than a decade.
This dormant supply constitutes 8.5% of Bitcoin’s 19.7 million circulating supply. Although the exact percentage of permanently lost cryptocurrencies is unclear, the report suggests that the total number of such coins should stabilize around 1.5 million.
Earlier this month, a Satoshi-era whale woke up after an entire decade of inactivity with holdings valued at $115 million.
The reactivation of long-dormant wallets doesn’t necessarily correlate with significant price movements, according to the report.
Chainalysis has observed that old wallets tend to reactivate at a relatively predictable pace. The majority of such wallets, given their small size, typically don’t make headlines.
READ MORE: Bitcoin Outperforms Tesla in Long-Term Gains
Ninety-nine percent of all wallets considered lost contain less than 50 BTC (approximately $3.2 million at current prices).
Data provided by Glassnode reveals that more than 68% of Bitcoin’s total circulating supply has been inactive for more than a year.
The decrease in available supply could be a bullish development, especially considering the growing demand following the approval of several Bitcoin exchange-traded funds in January.
As of now, the largest cryptocurrency is trading at $64,810 on major spot exchanges.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
