This Is How Much Bitcoin (BTC) Is Lost Forever: ITB Data

On-chain data examined by blockchain analytics firm IntoTheBlock has revealed that roughly 29% of all bitcoin (BTC) in circulation has been unchanged for more than five years.

In a tweet on Monday, analysts at the firm Said A large part of fixed assets can be lost coins.

Have you ever wondered how many bitcoins are lost forever? Our data shows that 29% $BTC Has not moved for more than 5 years. It is possible that a large part of this is related to the lost coins. #bitcoin

—intotheblock (@intotheblock) 17 July 2023

Lost 29% of BTC?

The latest analysis by IntoTheBlock echoes a recent report from crypto exchange Bitfinex, which revealed that unsettled BTC volume has reached a new all-time high, leading to a decrease in liquidity for the asset.

Bitfinex also reported that around 70% of the circulating supply of BTC has been lying idle for at least a year; This is the highest ever recorded since the inception of the leading crypto asset.

Although there is no specific reason for the current and prolonged inactivity of a significant portion of BTC, several factors are believed to be responsible for the development.

As predicted by the analysts of IntoTheBlock, most of the coins may be lost forever. On the other hand, it could be a sign of growing interest from investors, especially institutions, who are bullish towards bitcoin and believe in the long-term potential of the asset.

The HODLing attitude of both large and institutional investors reflects the expectation of positive price action for BTC, indicating that they consider the crypto asset a viable investment option.

Upcoming Bitcoin Halving Event

Another factor to consider is the upcoming bitcoin halving event for April 2024. Every four years, at block 210,000, a mechanism in the bitcoin network halves the block reward for mining BTC. Bitcoin’s 4th halving will see the block reward drop from 6.25 BTC to 3.125 BTC.

This event is viewed as a bullish signal as it magnifies the potential scarcity of BTC, supports its supply-demand dynamics and positively affects its value.

As the halving approaches, crypto funds and investment firms are accumulating BTC at its current price levels, increasing their holdings, and preparing themselves for positive price action.