Fidelity Digital Assets, the cryptocurrency arm of mutual funds giant Fidelity, has highlighted the increasing impact of Bitcoin’s “ancient” supply, which has not moved in more than a decade.
According to Fidelity, it is now outpacing the daily issuance of Bitcoins (566 coins and 450 coins, respectively).
The total value of the ancient supply has now ballooned to a whopping $360 billion at current prices.
The report says that the growing contingent of long-term holders is becoming increasingly influential within the Bitcoin ecosystem.
By 2035, the share of ancient supply is projected to reach 30%.
Bitcoin’s scarcity, which is considered to be its key value proposition, is expected to continue growing over time.
Public companies holding Bitcoin could also have an increasing impact on Bitcoin’s supply.
The key caveat
In late 2024, a lot of ancient coins started moving, with many BTC owners likely taking profits. The supply of five-year holders also experienced a sharp decrease.
The moves performed by long-term holders might explain why Bitcoin experienced selling pressure in the first quarter of the year.
The fact that the ancient supply is outpacing issuance does not necessarily mean that Bitcoin will see higher prices, Fidelity notes. In fact, it could potentially have an inverse effect in the short term.
Even holders with the highest conviction could potentially crack under pressure due to certain market conditions. If they start moving coins en masse, this leads to selling pressure.
