Illiquid Bitcoin Stock Could Reach 8.3 Million by 2032

Fidelity analysts predict that by 2032, a significant portion of bitcoins could leave active circulation, which would have a significant impact on the market.

According to research from Fidelity, up to 8.3 million bitcoins could become illiquid by 2032. That would be about 42% of the current supply. Such a scenario could reduce the available supply on the open market and support prices.

In a report published Monday, the analysts identified two key groups that consistently accumulate bitcoin and do not withdraw it from their wallets. The first group includes long-term holders who have not moved their funds for at least seven years. The second group includes public companies that have at least 1,000 BTC in their treasuries.

The study shows that long-term holders have not reduced their holdings since 2016. Public companies also show high levels of asset retention, recording a reduction in holdings in only one quarter, Q2 2022. Currently, 105 public companies hold over 969,000 BTC, representing 4.61% of the total supply.

Fidelity estimates that the combined holdings of these two groups will exceed 6 million bitcoins by the end of 2025. This represents more than 28% of the 21 million coin supply limit. The forecast of 8.3 million illiquid BTC by 2032 is based on the assumption that current accumulation rates will continue, and the emergence of new corporate treasuries will further accelerate this trend.

The report also raises potential risks for the market. At the end of the second quarter, the total value of bitcoin held by these groups was estimated at $628 billion. If large holders decide to take profits, this could put significant pressure on the price. Over the past 30 days, whales have already sold $12.7 billion in assets, which coincided with a 2% correction in the price of bitcoin.

Source: cryptonews.net