Bitcoin Scarcity Prediction for 2025: Estimated 28% Reduction in Circulating Supply
The Bitcoin (BTC) market is bracing for a period of increased volatility and potentially higher btc price, according to projections by Fidelity. This shift is largely due to a decrease in Bitcoin's circulating supply, which is expected to become more pronounced in the coming years.
Approximately 28% of the total Bitcoin supply is anticipated to be out of circulation by the end of 2025. Two main groups contributing to this illiquid supply are addresses that have not recorded a move for seven years or more, and companies listed on an exchange holding at least 1,000 Bitcoin. Fidelity projects that the amount of Bitcoin held by these groups could grow to 8.3 million Bitcoin by 2032.
These groups, combined, are expected to hold more than 6 million Bitcoin by the end of 2025. As of June 30, 2025, these two groups held more than $628 billion in Bitcoin, more than double the value they held just a year earlier. Early signs of this trend have already been observed, with 80,000 'ancient Bitcoin' that had not moved for over a decade being sold in July 2025.
This consolidation trend reduces the amount of Bitcoin available for trading by retail investors. As the total Bitcoin supply is fixed at 21 million, the decreasing circulating supply could lead to further price appreciation. However, it's important to note that an asset's past performance does not determine its projected future bitcoin price when trading crypto. Always do your own research and use cold hard cash before investing.
Investors and market watchers should prepare themselves for this new dynamic, which could change the way Bitcoin is perceived and sustained as an investment asset. A deep understanding of the supply and demand dynamics in the Bitcoin market will be key to successful navigation in the cryptocurrency market.
It's worth noting that the search results do not provide specific information about which companies are primarily responsible for the mass immobilization of Bitcoin or which will hold more than 6 million BTC by the end of 2025. This article serves to enrich readers' information about the Bitcoin market, encouraging them to delve deeper into the subject and make informed decisions.
In conclusion, the Bitcoin market is entering a phase of reduced liquidity, which could lead to increased volatility and potentially higher btc price. Investors are advised to understand this shift and adapt their long-term portfolio strategies according to changing market conditions.
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