Crypto Dan
Reasons why the price of Bitcoin is poised to rise in 2024 and 2025
Bitcoin is approaching its halving in April 2024. The first chart shows the number of newly issued Bitcoins over time. We can see a sharp decrease in the supply of Bitcoins in 2012, 2016, and 2020. This phenomenon indicates the halving, which is bound to happen again in the future. It's by design; the supply of Bitcoin in the market decreases significantly approximately every four years. Contrary to the diminishing supply, recent approval of physical Bitcoin ETFs, which is considered one of Bitcoin's biggest bullish factors, has contributed significantly to the increase in medium to long-term demand. The second chart illustrates the number of active wallets used when sending or receiving Bitcoin. This metric shows a steep upward trend, especially at the peaks of bull markets, indicating a long-term uptrend. The increase in active wallets implies a higher demand for Bitcoin as more people are transacting with the coin. In conclusion, with the decrease in supply, increase in demand, and various economic and societal issues, especially the expected ongoing inflation, Bitcoin is likely to solidify its position as a long-term upward-trending alternative investment asset. There is a high probability that 2024 and 2025 will witness a bullish market worth anticipating.