$121 Billion Worth of Bitcoin Might Be Gone Forever

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Based on information from Chainalysis, mentioned in a recent Fortune report, approximately 1.8 million Bitcoins, equivalent to around $121 billion, are held in wallets that haven’t been used for over 10 years.

Dormant coins account for 8.5% of Bitcoin’s 19.7 million circulating supply. 

Approximately 1.5 million cryptocurrencies are estimated to be permanently lost according to the report, although the exact percentage of all cryptocurrencies that have been lost remains uncertain.

Around the start of this month, a cryptocurrency investor from the early days, referred to as a “Satoshi-era whale,” became active again after a long slumber of ten years, waking up with a fortune worth approximately $115 million.

After a prolonged inactivity, some people may consider cashing out their wallets following a significant price increase.

The report indicates that there isn’t a strong connection between the reactivation of old digital wallets and significant price fluctuations.

It’s worth noting that Chainalysis has observed a consistent pattern in the activation of older cryptocurrency wallets. Most of these wallets don’t make news due to their modest size, as approximately 99% of such wallets hold less than 50 Bitcoin ($3.2 million based on current prices).

A supply crunch? 

Based on Glassnode’s data, over two-thirds (68%) of all existing Bitcoins have not been used or transferred for over a year.

If you consider the increasing demand for Bitcoin following the approval of several ETFs in January, a decrease in supply could be a positive sign for price increases.

The largest cryptocurrency is currently trading at $64,810 on major spot exchanges. 

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2024-04-24 21:11