Fidelity: 28% of Bitcoin Supply May Turn Illiquid by 2025

Bitcoin's supply is becoming more illiquid as 95% of its total supply nears circulation, according to Fidelity Digital Assets. This indicates a shift from abundance to scarcity.

Key drivers: wallets holding BTC for over seven years and public companies with at least 1,000 BTC.
These groups could control over six million BTC by the end of 2025, over 28% of the total 21 million supply.

Public companies currently hold around 830,000 BTC (4% of circulating supply), with estimates including private firms reaching over 1.3 million BTC.

The adoption of BTC in corporate treasuries has increased the illiquid supply significantly since late 2024. By 2032, it's predicted that 8.3 million BTC (42% of supply) could be held long-term. Nation-state adoption and regulatory changes may accelerate this trend.

A similar pattern is observed with Ethereum (ETH). Post the launch of Ether ETFs in 2024, they absorbed over 5.5% of ETH’s total supply, while corporate treasuries hold more than 4%.

Bitcoin (BTC) prices have decreased from $116,700 to just above $115,000, continuing a week of consolidation. The asset is 7.2% below its all-time high, with a correction anticipated.