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Growing number of Bitcoin owners are trying to open locked crypto wallets
- Bitcoin’s resurgence has sparked a wave of wallet recovery attempts, Reuters reported.
- Companies specializing in this field have seen a sharp increase in recovery requests this year.
- According to one estimate, around 20% of bitcoins in circulation may be stuck in locked wallets.
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Cryptocurrency holders are flocking to companies that offer services to help them regain access to locked wallets in a hurry to ensure they are not left behind as the industry records huge gains in 2024.
Reuters reported that recovery requests are exploding from companies such as the German company ReWallet and the American company Wallet Recovery Service. The first saw applications peak in March when Bitcoin the price reached its all-time high of over $73,000.
ReWallet saw a 334% increase in user requests locked into their wallet over the last quarter, while WRS gained 30% this year through mid-April.
For investors, losing access to a wallet can be as simple as forgetting a password or no longer being able to perform two-factor authentication. Given the decentralized nature of cryptocurrencies, tokens are stored on digital blockchains and owners often carry both a password and security phrases to access their holdings.
According to estimates offered by ReWallet, up to 20% of the bitcoin supply is inactive and trapped in lost wallets. As of March, this amount was equivalent to approximately $237 billion.
But with the rise of bitcoin this year, some investors are trying to regain access to the massive gains made in the sector. While the world’s largest cryptocurrency has faltered since hitting all-time highs in March, it is up 54% since the end of 2023.
Bullish investors brushed off slowdown thanks to broader macroeconomic issuesbut don’t expect it to last.
Analysts at Standard Chartered and Bernstein continue to expect upside, and both expect the token to rise. reach $150,000but over different periods.
For wallet recovery companies, the interest hike is profitable. Upon successful recovery, ReWallet and WRS charge a fee equivalent to 20% of the wallet’s contents, Reuters reported.