Bitcoin's Shrinking Circulating Supply Fails to Boost Price Above $87K

Bitcoin's circulating supply has tightened significantly as long-term holders keep their coins off the market. According to data from River Financial, about 16.3 million BTC remains untouched for more than six months, representing 81% of the total circulating supply.

The shrinking active supply is largely linked to long-term accumulation, with long-term holders adding over 3 million BTC since 2020. Meanwhile, older coins are no longer returning to circulation at the same rate, with only around 300,000 BTC moving during the first half of 2026.

This trend has significant implications for market dynamics, leaving fewer coins available for buyers and sellers across exchanges and trading platforms.