Cryptocurrency asset management firm Bitwise has released a groundbreaking projection that could reshape investment portfolios worldwide. According to their latest analysis, Bitcoin is positioned to reach an astonishing $1.3 million by 2035, driven by unprecedented institutional demand and fundamental supply constraints. This bold Bitcoin price prediction represents a 28.3% compound annual growth rate that significantly outperforms traditional assets.
Bitwise’s Comprehensive Bitcoin Price Prediction Framework
Bitwise’s research team, led by Chief Investment Officer Matt Hougan, developed a sophisticated valuation model examining multiple scenarios. Consequently, their base case projects $1.3 million by 2035, while bullish conditions could push Bitcoin to $2.97 million. Alternatively, a bearish scenario still suggests $88,005, demonstrating the wide potential range. Importantly, institutional investors now dominate Bitcoin trading volume, with over 75% of Coinbase activity coming from major financial players.
Institutional Demand Outpacing Bitcoin Supply
The supply-demand imbalance has become increasingly dramatic. Currently, institutional demand exceeds daily mining production by six times, creating significant market pressure. Moreover, corporate Bitcoin adoption has accelerated dramatically, with 35 publicly traded companies now holding at least 1,000 BTC each. MicroStrategy continues leading this accumulation, recently signaling its fourth monthly Bitcoin purchase and bringing total holdings to over 632,457 BTC valued at more than $71 billion.
Supply Scarcity and Macroeconomic Pressures
Bitcoin’s inherent scarcity provides a fundamental advantage. With 94.8% of total supply already circulating and annual issuance dropping to 0.2% by 2032, new Bitcoin production cannot meet rising demand. Additionally, approximately 70% of Bitcoin supply remains unmoved for at least one year, indicating strong holding behavior. Meanwhile, macroeconomic factors including rising US federal debt, which increased by $13 trillion over five years to $36.2 trillion, create additional support for Bitcoin adoption as a hedge against currency debasement.
The Perfect Storm for Bitcoin Appreciation
The convergence of these factors creates what analysts describe as a perfect storm for Bitcoin price appreciation. Miners produce only 450 BTC daily while institutions withdraw over 2,500 BTC in 48-hour periods. This supply-demand imbalance appears positioned to drive significant price discovery over the coming decade. Furthermore, the inelastic supply of Bitcoin, combined with continued demand growth, remains the single most important driver of long-term price assumptions.
Investment Implications and Market Outlook
Bitwise’s Bitcoin price prediction suggests substantial outperformance compared to traditional assets. Their projected 28.3% CAGR significantly outpaces equities (6.2%), bonds (4.0%), and gold (3.8%). However, investors should recognize the inherent volatility still expected in Bitcoin markets despite increasing institutional participation. The wide range between bull and bear cases reflects both the opportunity and risk inherent in cryptocurrency investments.
Frequently Asked Questions
What is Bitwise’s main Bitcoin price prediction for 2035?
Bitwise’s base case projects Bitcoin reaching $1.3 million by 2035, representing a 28.3% compound annual growth rate based on institutional demand and supply constraints.
How does institutional demand affect Bitcoin’s price?
Institutional demand currently exceeds daily mining production by six times, creating significant supply-demand imbalances that drive price appreciation according to Bitwise’s analysis.
What percentage of Bitcoin supply is still available?
With 94.8% of total Bitcoin supply already in circulation and annual issuance dropping to 0.2% by 2032, new production cannot meet rising institutional demand.
Which companies are leading corporate Bitcoin accumulation?
MicroStrategy continues leading corporate accumulation with over 632,457 BTC valued at more than $71 billion, representing over 53% unrealized gains on their Bitcoin investment.
How does Bitcoin’s projected growth compare to traditional assets?
Bitwise projects Bitcoin’s 28.3% CAGR significantly outpaces traditional assets like equities (6.2%), bonds (4.0%), and gold (3.8%) over the next decade.
What macroeconomic factors support Bitcoin’s growth?
Rising US federal debt, which increased by $13 trillion over five years to $36.2 trillion, and concerns about fiat currency debasement provide additional support for Bitcoin adoption as a hedge.
