Dormant Bitcoin Awakens: The Story of Lost Coins Returning to Circulation

Since the beginning of 2024, with the launch of the Bitcoin ETF, the number of coins considered as Lost Coins — those inactive for years or never moved — has started to decrease. It was estimated that around 8 million BTC were inactive, but this number has dropped to 7.54 million, an impressive reduction of 460,000 BTC.

This trend clearly reflects that Long-Term Holders are taking advantage of the bullish cycle to move their "forgotten" coins, which have been sitting in dormant wallets for years. When these coins become active again, they directly impact market supply and demand, increasing liquidity and influencing prices.

The "Lost Coins vs Active Supply" metric measures the balance between inactive Bitcoins (lost or in dormant wallets) and those actively circulating.

A high proportion of Lost Coins reduces the effective available supply, emphasizing the asset’s scarcity.

As dormant coins return to the market, liquidity and value dynamics may shift, influencing long-term price stability.

This metric provides valuable insights into how scarcity impacts Bitcoin’s value and how changes in active supply can shape the market’s future.

Bitcoin holds stories. And when they resurface, the market reacts.

Alphractal