‘Ancient’ Bitcoin Supply Now Outpacing Newly Mined BTC: Fidelity Report

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Fidelity Digital Assets recently published a report that sheds light on a significant development in the world of Bitcoin. According to the report, more Bitcoin is now entering the category of “ancient supply” than is being mined for the first time ever. Ancient supply refers to coins that have not been moved for 10 years or more.

As of June 8, an average of 566 BTC per day is crossing the 10-year threshold, while only 450 BTC is being issued daily post the 2024 halving. This trend indicates a growing number of long-term holders who are not selling their Bitcoin despite its increasing value.

The report highlights that over 3.4 million BTC, valued at over $360 billion, now fall into the ancient supply category. It is estimated that around one-third of this supply belongs to Bitcoin’s mysterious creator, Satoshi Nakamoto.

Since the 2024 halving, the number of coins entering ancient supply has consistently exceeded the number of new coins being mined. This shift underscores the increasing long-term conviction among Bitcoin holders and reflects a tightening of the cryptocurrency’s liquid supply.

Fidelity uses a metric called the ancient supply HODL rate to track this trend, which measures how many coins are entering the 10-year category each day adjusted for new issuance. This rate turned positive in April 2024 and has remained so, indicating a sustained shift towards long-term holding of Bitcoin.

Looking ahead, Fidelity projects that ancient supply could make up 20 percent of total Bitcoin by 2028 and 25 percent by 2034. If public companies holding at least 1,000 BTC are included, this percentage could reach 30 by 2035.

The report also notes that as of June 8, 27 public companies hold more than 800,000 BTC combined. This growing institutional presence is expected to further tighten the supply of Bitcoin and increase the influence of long-term holders over time.

Overall, the data presented in Fidelity’s report suggests a significant shift in the dynamics of Bitcoin ownership, with more emphasis on long-term holding and a decrease in the liquid supply of the cryptocurrency.