Fidelity Digital Assets has released a significant projection indicating that Bitcoin’s illiquid supply could reach 8.3 million BTC by 2032. This forecast highlights a substantial shift in market dynamics driven by long-term holders and corporate treasury strategies. According to the report, over 6 million BTC are expected to be effectively removed from circulation by 2025 as these entities continue to accumulate and hold the cryptocurrency. This trend underscores a growing preference for Bitcoin as a store of value rather than a medium for frequent trading. The reduction in available supply is anticipated to create a more constrained market environment, which could exert upward pressure on prices due to basic economic principles of scarcity and demand. Fidelity’s analysis points to a maturation of the Bitcoin ecosystem, where institutional adoption and hodling mentalities are becoming increasingly prevalent. This development may signal a new phase in Bitcoin’s evolution, characterized by reduced volatility and enhanced value retention as liquid supplies diminish over the coming decade.
