Bitcoin’s vanishing act will locking over the quarter of the Bitcoin supply?

Bitcoin is pulling a full Houdini act. According to fresh-eye research from Fidelity Digital Assets, a cool 28% of all Bitcoin , that’s over six million coins, could be locked down tight and out of reach by the end of the year.

We’re stepping into a new age of scarcity, where this digital gold is less ready to trade and more deep in the vault. Are we okay with that?

Bitcoin piles like modern-day Fort Knoxes

Fidelity’s brainiac Zack Wainwright spotted two distinct fan clubs hoarding Bitcoin like it’s hotcakes at a heatwave picnic.

First up, you’ve got the long-haulers, hodlers who haven’t moved their Bitcoins for seven years or more.

These are the diehards, the true believers who treat their stash like grandma’s vintage wines, untouchable and growing more precious over time.

On the other side, public companies holding at least 1,000 BTC are stacking their piles like modern-day Fort Knoxes.

Combined, these groups are holding a hefty chunk of the total 21 million Bitcoins that will ever cook in this blockchain kitchen.

Real scarcity

Public companies alone have scooped up over 830,000 BTC. That’s roughly 4% of the circulating Bitcoin buffet.

And you know what? The number could be even juicier since other reports peg corporate holdings at over 1.3 million BTC.

And this trend is accelerating, with more companies doubling down on Bitcoin for their treasuries since late 2024. Fidelity’s crystal ball sees this illiquid supply swelling to 42% by 2032. That’s a lot, let me tell ya.

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Scarcity isn’t just a buzzword anymore. Extended holding periods and spirited buying, especially from institutional suits wearing tailored crypto glasses, suggest that Bitcoin’s future might be less about frenetic trading and more about quiet accumulation.

And guess what? Bitcoin isn’t flying solo on this flight to scarcity. Ethereum seems to be hitching a ride, with crypto treasuries snapping up more than 4% of its supply already.

Ether ETFs have also been busy, gobbling over 5.5% of its total float.

Slow consolidation

Price-wise, Bitcoin’s been swaying a little, dipping from a high of $116,700 to around $115,000 in the time of writing.

We’re still before the Fed meeting now, before the rate cut announcement (or the lack of it).

No insane rollercoasters yet, just a slow consolidation dance, holding roughly 7% shy of its all-time glory.

So, experts say less available Bitcoin means more punch for the coins that do hit the market, think of it like a rare collectible in a thrift shop suddenly becoming priceless.

Scarcity could fuel buying frenzies and bolster Bitcoin’s role as a digital store of value, provided regulators and nation-states keep playing nice.

The long-term owners are stacking chips, and if you’re not in on this, you might be missing the quietest bull run yet.