3 Reasons Why Bitcoin’s Price Expected to Skyrocket in 2032

Analysts predict a surge in Bitcoin's price due to the effects of halving, the rise in holders, and the network effect driving demand for the cryptocurrency.

Bitcoin analysts expect that 2032 will be a year in which the price of the top-capitalized cryptocurrency will soar to extremely high levels, a conclusion that comes out through the historical profitability of BTC during the previous halving periods, but also through other determining factors.

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In this article we will analyze three of the main reasons that make analysts estimate that the price of Bitcoin will reach very high levels within the next decade.

The more Halving, the more expensive

Halving is the phenomenon in which Bitcoin’s emissions gradually decrease over time. Because less and less new Bitcoin is mined, the price of each BTC increases and the asset faces deflation.

This has happened as many times in the past as Bitcoin has gone through Halving. If this trend continues during the next two Halving cycles, then the price of BTC is expected to reach a very high value by 2032.

The logic of this theory is very simple: the more Halving that Bitcoin experiences, the more expensive it becomes.

More and more holders

As reported on TheRationalRoot, the illiquidity of Bitcoin has reached its highest level since 2014, with only 22% of existing BTC now available for trading.

This fact is driving the Bitcoin market even closer to so-called “supply shock”. Simply put, this means that the number of Bitcoin holders is constantly increasing and most of them are withdrawing their Bitcoin from exchanges and moving it to “cold wallets”.

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It makes sense that this trend of decreasing the amount of BTC available inevitably pushes the price upwards.

The network effect

The ever-increasing number of users on the Bitcoin network is creating a steady increase in demand for the asset.

The network effect, and Metcalfe’s law, describe this increasing demand as the adoption of a product expands.

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The number of new cryptocurrency users is growing very quickly. The cryptocurrency industry is now at the level that the Internet was in the 1990s, when only individual technicians could use it.

It took about 15 years for the internet to dominate the market and become a mass product. For BTC it is estimated that these years of widespread adoption will be between 2030-2032.

Conclusion

The simultaneous pressure on Bitcoin’s price from these three factors is expected to result in BTC’s price continuously increasing. Recall that the next halving is expected in the years 2024, 2028 and 2032.

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