The Huge Dormant Wave of New Bitcoin Buyers Doesn’t Even Get Bitcoin Yet

A large recent cohort of new Bitcoin buyers remains largely dormant and keeps holdings with custodial platforms, exchanges, or ETFs rather than in self-custody, indicating many don’t actively use on‑chain wallets. This concentration with custodians heightens centralization and counterparty risk while muting on‑chain transaction demand. The key implication for Bitcoin is that market dynamics and decentralization are vulnerable: a shift from custodial holdings to self‑custody or redemptions could trigger sudden on‑chain activity and price volatility, whereas continued custodial concentration limits network resilience.