ITB Data Shows How Much Bitcoin (BTC) Has Been Permanently Lost
Analysts at IntoTheBlock said that a lot of the assets that haven’t been moved could be coins that will never be found again.
The blockchain analytics company IntoTheBlock looked at on-chain data and found that about 29% of all bitcoins (BTC) in circulation have not been moved in more than five years.
Analysts at the company said in a tweet on Monday that a lot of the inactive assets might be lost coins.
Ever wondered how many Bitcoins are lost forever? Our data shows that 29% of $BTC hasn't moved in over 5 years. It's possible that a large part of this concerns lost coins. #Bitcoin
The latest analysis from IntoTheBlock agrees with a recent report from the crypto exchange Bitfinex, which said that the amount of BTC that can’t be moved has hit a new all-time high, which makes the asset less liquid.
Bitfinex also said that about 70% of the BTC in circulation has been dormant for at least a year. This is the most that has ever been reported since the first time the top cryptocurrency was created.
Even though there is no one reason why a big chunk of BTC has been inactive for a long time, it is thought that a number of things have led to it.
Analysts at IntoTheBlock thought that most of the coins could be lost for good. On the other hand, it could be a sign that investors, especially institutions, are getting more interested in Bitcoin because they are optimistic about its long-term prospects.
Large and institutional investors who HODL show that they expect BTC’s price to go up, which shows that they see the cryptocurrency as a good investment choice.
Coming Bitcoin Halving Event
Another thing to think about is the Bitcoin split event that will happen in April 2024. At 210,000 blocks, every four years, a mechanism in the Bitcoin network halves the prize for mining BTC. The block rewards will go from 6.25 BTC to 3.125 BTC after the fourth split.
The event is seen as a bullish sign because it makes BTC even more scarce in the future, helps its supply-and-demand factors, and raises its value.
As the halving gets closer, crypto funds and financial firms are buying Bitcoin at its current price, adding to their holdings and getting ready for the price to go up.
