According to U.Today, a recent report by Fortune, citing data from blockchain analysis firm Chainalysis, reveals that approximately 1.8 million Bitcoins, equivalent to $121 billion, are held in wallets that have been inactive for over a decade. These dormant coins represent 8.5% of Bitcoin's 19.7 million circulating supply. The report does not clarify what proportion of these cryptocurrencies are lost forever, but it suggests that the total number of such coins should stabilize around 1.5 million.
Earlier this month, a Satoshi-era whale, a term used for a large holder of Bitcoin, became active after a decade of inactivity, holding $115 million. When such wallets become active after a long period of dormancy, it is often assumed that the owners might want to take profits following a price rally. However, the report indicates that there is no direct correlation between the activation of long-dormant wallets and significant price movements. Chainalysis has observed that old wallets tend to be activated at a relatively predictable rate. The majority of these wallets do not usually make headlines due to their small size. In fact, 99% of all wallets considered lost contain less than 50 BTC, equivalent to $3.2 million at current prices.
Data from Glassnode shows that over 68% of Bitcoin's total circulating supply has been inactive for more than a year. This decrease in supply available on the market could be a bullish development, considering the growing demand following the approval of several Bitcoin exchange-traded funds in January. The largest cryptocurrency, Bitcoin, is currently trading at $64,810 on major spot exchanges.
