On what circulation do you refer to? On the network's circulation, which increases by 6.25 BTC every 10 minutes or on the market's circulation which is the total bitcoins available for sale at the moment? Judging your post, I understand it's the former, but then I see this:


Which makes no sense. It doesn't matter how many people hold their coins. Every 10 minutes, the circulation of the total bitcoins that can ever exist increases whether there are holders or not.

bitcoin circulation is fixed release supply. set amounts per block.
peoples usage or choices do not affect this.

there is a separate statistic (bitcoin rich list) that shows the amount of coins held in large wallets
these wallet belong to exchanges.
and the % of coin in these large wallets compared to % in small wallets can kind of reveal how much coin is in the MARKET
coins held by exchanges do affect the price and mindset of peoples decision to buy or sell
however the other 18mill coins loose in random wallets do not affect the markets

LOL, did I make a mistake here, but really didn't mean to. 

Sorry if my assumption about bitcoin circulating is wrong according to your understanding. I just think that there are million of bitcoin stored in wallet that are currently inactive due to user error or the owner has died will no longer be in circulating so the total of 21 million bitcoin will no longer arrive. I mean some wallet may have been reactivated because they have been restored by their owners and that has increased the supply currently circulating both in the market and in the community. I just want to know what you think about it, can it affect the bitcoin market?

Mamy of people have losted there wallets in previous years but after bitcoin got fam they have restored there wallets and many of people died and there wallets are closed and some of wallets are restored by the guardian of died man. This is the reason the circulation of Bitcoin is increased.

There you have it right.
Bitcoin cannot complete the 21m in circulation actively. Currently some of the articles and speculations said that there are 20% of mined Bitcoin that has been lost in the circulation. That comes from several reasons like death, lost password, locked away in an old wallet without any access to it.
I mean 20% that's a lot.

Now, If you ask me about those assumed to be lost Bitcoin that finds it's way back to the circulation, well that's a good thing for the market. Because those Bitcoin could finally be used for transactions and not only being stored for more years.
Using Bitcoin as a currency could help the price to grow even more bigger. I know a lot of us are just holding it lol.

The word "Circulating" is being used incorrectly. Not every Bitcoin which has been
mined to date is in circulation. Some are lost, some are not accessable and some
are in long term storage. Really the only amount of circulating supply are more
or less the ones on exchanges and in users wallets which are accessed every day.
How many coins is difficult to say.


Does this circulating supply affect the market? I would say only when large amounts
enter the market. Large quantities of Bitcoin which were previously not in circulation
but in long term storage are moved out of a wallet to an exchange can signal  that
a whale is about to sell those which can prompt weak hands to sell before the market
reacts to a possible big sell off.

According to the HODL Waves ^[1], you can get it from Glassnode academy ^[2], there is about 4M Bitcoin was likely lost. It is just assumption but we do know not all of inactive UTXOs are from lost Bitcoin. Some of them are not lost and will be moved at the right time of market.

They can be suddenly recovered and moved or simply moved to create news on the market.

Glassnode has a report Follow the smart money in which we can see some on-chain indicators that this bull run has yet topped up.

[1] https://unchained.com/hodlwaves/
[2] https://academy.glassnode.com/supply/hodl/hodl-waves

Even if they are out for sale, what would the OGs gain by selling off completely. Bitcoin is becoming the collateral, the guarantee and the bond backing for the whole crypto economy. Everyone who has a huge amount of Bitcoin can have much more clout by simply choosing to move it around into projects of their choosing. its not just the influence but the returns are decent too.

I don't think anybody with that sort of generational wealth will squander that, considering they were anyways smarter than the rest of us, being early in BTC and all. The point isn't whether they will sell, the point is whether they will diversify and weaponize their holdings.

Unfortunately, do we even know who these whales are and what do they do? Who ca say that they don't already have traditional money managers managing their wealth, not worried about when to sell.

Actually I'm not worried how many previously lost bitcoin can be recovered by their owners and will enter circulation, but since ATH has recently re-formed, I think it will have an effect on the price to some degree. The market will be very influential quickly just because of the news that spread and I don't expect wallet with a sizable amount of bitcoin to be active again in the future because people are worried about satoshi wallet.

Sorry about all this confusion (probably), but that's not what I meant. Locking this thread to prevent further confusion and misunderstanding. LOL, sorry.