The supply of lost Bitcoin tokens is on a downward trend—here’s what you need to know
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CoinWorld reported: The volatility in bitcoin price has led it to once again test the $83,000 mark. Meanwhile, the amount of lost bitcoin supply has dropped significantly. On-chain analyst Joao Wedson attributes this trend to bitcoin price approaching the $100,000 milestone, which changes the market's economic incentive structure. This has prompted bitcoin held in long-dormant wallets to be moved, including exchange cold storage and OG whale holdings, as well as bitcoin recovered from old backups and legal custody, effectively reclassifying previously "lost" bitcoin as active supply. At the same time, market data shows that large holders are accumulating low-leverage long positions, while high-leverage retail positions are facing liquidation.
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