Fidelity Digital Assets, the cryptocurrency division of mutual funds’ huge fidelity, highlights the increasing impact of the “ancient” supply of Bitcoin.
According to Fidelity, it currently outweighs the daily issuance of Bitcoin (566 and 450 coins, respectively).
The total ancient supply has swelled to a whopping $360 billion at current prices.
The report states that the overall conditions for long-term holders are increasingly influential in the Bitcoin ecosystem.
By 2035, the ancient supply ratio is projected to reach 30%.
The rarity of Bitcoin, considered an important value proposition, is expected to continue to grow over time.
Public companies that own Bitcoin may also have an impact on the supply of Bitcoin.
Important warning
In the second half of 2024, many ancient coins began to move, and it is likely that many BTC owners are making profits. The supply of five-year ownership also fell sharply.
Moves made by long-term holders may explain why Bitcoin experienced sales pressure in the first quarter of this year.
The fact that ancient supply outweighs issuance doesn’t necessarily mean that Bitcoin will see a higher price, Fidelity points out. In fact, it can have counterproductive effects in the short term.
Even holders with the highest convictions can potentially break under pressure due to certain market conditions. If they start moving coins in large quantities, this leads to sales pressure.
