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8.3 Million BTC to Become Illiquid by 2032, Says Fidelity
Fidelity predicts a significant reduction in Bitcoin's liquid supply, with over 8.3 million BTC potentially becoming "illiquid" by 2032 due to long-term holding trends.
Key Points from Fidelity's Report
- By Q2 2025, entities like long-term holders and public companies could control more than 6 million BTC, about 28% of the total supply.
- Projected increase to 8.3 million BTC by 2032, reducing available market supply.
- Currently, public companies hold nearly 1 million BTC, approximately 4.6% of the supply.
The decrease in liquid supply could influence upward price pressure but also concentrates ownership, posing risks if large holders sell.
Market Dynamics
- Recent data shows Bitcoin whales sold $12.7 billion in the past 30 days, leading to a 2% price drop.
- Despite recovery fueled by ETF inflows and macro factors, spot market weakness and profit-taking create sell pressure.
- Glassnode reports that rising RSI levels and softening demand for leveraged longs indicate market fragility.
Calm Risk Environment
- CryptoQuant’s Bitcoin Risk Index is at 23%, indicating low probability of sudden liquidations.
- Market stability mirrors previous periods, with attention on upcoming Federal Reserve policy announcements.
Analysts suggest US monetary easing might trigger rallies in Bitcoin and Ethereum by Q4, impacting investment decisions.
Authors credited by the source: Parth Dubey
Published by Holder based on an external source.
