I read some old threads about lost Bitcoins ND this question has been on my mind ever since
If the lost Bitcoins were for instance recovered will the price of Bitcoin drop because in theory it would affect the amount of Bitcoin in circulation which will lower it's price . I saw in those threads that lost Bitcoins are considered a donation to the Bitcoin network. so if my theory is correct then we should be happy those Bitcoins were lost.
It is very simple. The bitcoins that are lost can be considered as burnt and it directly reduces the active supply of bitcoins in the network.
So bitcoin becomes more scarce with reducing supply which gives it more value. If the bitcoins are recovered the active supply increases making the value slightly decrease.
It's all about the demand and supply.