Increased liquidity from reactivated coins could lead to short-term volatility and price fluctuationshave recently re-entered circulation, sending ripples through the market. These “lost” coins, once thought to be inaccessible, are now actively circulating again.
The principle of supply and demand dictates that when an asset is scarce, its perceived value increases – especially when demand remains steady or rises. This scarcity narrative has bolstered Bitcoin’s reputation as “digital gold,” a store of value.The reactivation of dormant BTCs, particularly since 2024, marks a shift in Bitcoin’s market dynamics. Around 460,000 BTC, once thought lost, have resurfaced, largely driven by the launch of the Bitcoin ETF.
This influx may temporarily dilute the asset’s perceived scarcity, especially if these coins are sold quickly into the market, potentially creating short-term volatility.value. Although Bitcoin remains limited in total supply, the reactivation of these coins increases the effective circulating supply, changing the balance between supply and demand.
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