en.bitcoinsistemi.com
Cryptocurrency research firm Alphractal has highlighted a fascinating trend in the Bitcoin market in its latest analysis: dormant coins that were long considered “lost” are returning to circulation.
This shift comes amid the bullish momentum sparked by the launch of the Bitcoin ETF earlier this year.
At the start of 2024, an estimated 8 million BTC were categorized as “Lost Coins,” referring to coins that had lain dormant for years or had not moved at all. However, this figure has since dropped by a significant 460,000 BTC to 7.54 million.
According to Alphractal, the renewed activity among these long-dormant coins reflects the actions of long-term holders who have benefited from the market’s upward trajectory. These forgotten assets, locked away in wallets for years, are now re-entering the market, directly affecting Bitcoin’s supply and demand dynamics.
The firm highlighted the “Lost Coins vs Active Supply” metric, which measures the balance between inactive Bitcoins and those actively in circulation. A high ratio of lost coins highlights Bitcoin's scarcity by reducing the effective supply and generally supports its value.
However, as these dormant coins come back to life, liquidity increases, potentially affecting market stability and price dynamics. This trend not only adds depth to Bitcoin’s story as a financial asset, but also offers valuable insight into how changes in active supply could shape Bitcoin’s future.
*This is not investment advice.