A recent report by Fidelity Digital Assets has sparked attention in the cryptocurrency community, projecting that approximately 8.3 million Bitcoin (BTC), equivalent to 42% of the total Bitcoin supply, may become illiquid by 2032. This prediction is based on the increasing trend of long-term holders and public companies accumulating and holding onto their Bitcoin assets.
The notion of illiquid Bitcoin refers to coins that are not being actively traded or sold, effectively reducing the circulating supply. According to Fidelity Digital Assets, this phenomenon is largely driven by public companies and long-term investors who are opting to hold their Bitcoin rather than sell, thereby creating a significant impact on the cryptocurrency’s price. The report highlights that the supply of Bitcoin that hasn’t been moved for seven or more years is steadily increasing, with over 350,000 BTC currently falling into this category.
Quarterly net change and total supply of Bitcoin balances that did not decrease in seven years | Source: Fidelity Digital Assets
Public Companies and Long-Term Holders Contribute to Illiquid Supply
Public companies have been increasingly buying up Bitcoin, with their holdings accelerating since the fourth quarter of 2024. Currently, public companies hold over 830,000 BTC, with the majority of these holdings concentrated among the top 30 holders. Both public companies and long-term holders have contributed to positive price pressure on Bitcoin, with the value of their combined holdings more than doubling since the same time last year.
Total number of BTC held by public companies | Source: Fidelity Digital Assets
Implications and Projections
Assuming the current rate of accumulation continues, Fidelity Digital Assets forecasts that 42% of all Bitcoin could be illiquid by 2032. However, the report also cautions that trends can change, citing an instance in July 2025 where holders sold 80,000 “ancient Bitcoin” that had been held for more than 10 years. This highlights the potential for shifts in investor behavior and market dynamics that could impact the illiquid supply of Bitcoin.
For more information and to read the full report, visit the original source: https://crypto.news/fidelity-digital-assets-forecasts-42-bitcoin-illiquid-supply-by-2032/
