This illiquid supply could create a market shock and contribute to price increases.
According to a new report from Fidelity Digital Assets, approximately 28% of the total Bitcoin (BTC) supply will be effectively non-circulating by the end of 2025.
Fidelity projects that the combined holdings of dormant addresses (inactive for over seven years) and publicly traded companies holding more than 1,000 BTC will exceed 6 million by the end of this year. This consolidation could create a significant supply shock in the market.
In 2010, the Bitcoin ecosystem desperately wanted more BTC to be circulated. Some websites even offered five Bitcoins for a single click.
Today, with 1 BTC valued at over $100,000, such efforts are no longer necessary. Fidelity’s research highlights a key trend: the number of unmoving Bitcoins steadily increases, a sharp reversal from a decade ago. Given Bitcoin’s fixed total supply of 21 million, an increase in non-circulating coins raises the likelihood of a price increase.
Fidelity’s report identifies two key groups that contribute to this illiquid supply. These groups include addresses with no recorded movement for seven or more years. They also include publicly traded companies holding at least 1,000 BTC.
This combined group is estimated to hold over 6 million BTC by the end of 2025, representing 28% of the total supply. Fidelity further projects that these holdings could grow to 8.3 million BTC by 2032.
A critical question is whether these long-term holders will begin to take profits. According to Zack Wainwright, a researcher at Fidelity Digital Assets, these two groups held over $628 billion in Bitcoin as of June 30, 2025 (for $107,700 per BTC) — more than double the value held just one year prior.
While this represents a massive unrealized gain, Wainwright does not expect it to reverse the illiquid supply trend. He acknowledged, however, that there have been early signs of capitulation, with 80,000 “ancient Bitcoin” (coins that haven’t moved for over a decade) being sold in July 2025.
Wainwright concludes that a shrinking liquid supply will continue, and investors should understand this shift to shape their long-term portfolio strategies.
