Bitcoin Price Prediction: Bitwise Exec Forecasts Stunning $1M by 2029 Driven by ETFs & Government Demand

Could Bitcoin really hit $1 million within the next five years? That’s the bold Bitcoin price prediction coming from a leading executive at Bitwise, a major crypto asset manager. This forecast isn’t just pulled from thin air; it’s based on significant shifts happening in the financial world, including the impact of new investment vehicles and potential government interest.

What’s Driving the Bold $1M Bitcoin Price Prediction?

André Dragosch, Bitwise’s head of European research, shared this ambitious outlook with Crypto News Insights. His core argument is that expanding institutional Bitcoin adoption could provide the consistent capital inflows needed for Bitcoin to eventually match gold’s massive market capitalization.

• The 2029 Target: Bitwise’s internal forecast sees Bitcoin reaching $1 million by 2029.
• Matching Gold: This target is based on the idea that Bitcoin will equal gold’s total market cap and addressable market within this timeframe.
• Current Comparison: Gold’s market cap is over $21.7 trillion, while Bitcoin’s Bitcoin market cap is around $1.9 trillion, placing it as the seventh-largest asset globally.

How Do ETFs and Institutions Fuel Growth?

A major factor highlighted by Dragosch is the impact of the US-based spot Bitcoin ETF products launched recently. These ETFs have already seen significant trading volume and asset accumulation, exceeding initial expectations.

• Structural Inflows: ETFs provide a straightforward way for traditional investors to gain Bitcoin exposure, creating consistent ‘structural’ inflows of capital.
• Prolonging Cycles: The analyst suggests that these structural inflows could help prolong Bitcoin’s typical four-year market cycles.
• Wirehouse Potential: The next wave of institutional Bitcoin adoption could come from major US wirehouses (large wealth management firms like Merrill Lynch or Morgan Stanley). Many haven’t fully opened their platforms to Bitcoin ETFs yet, but they control trillions in customer assets. Their entry could bring substantial new capital.

What About Government Demand?

Beyond institutional interest, potential government involvement could significantly impact Bitcoin’s price trajectory. Dragosch mentioned the possibility of the US government making direct Bitcoin acquisitions.

• 2025 Base Case: Without further government adoption, Bitwise’s base case for the end of 2025 is $200,000.
• Government Impact: If a sovereign entity like the US government steps in with acquisitions, the 2025 target could move closer to $500,000.
• Funding Ideas: Reports suggest the US government is exploring creative, budget-neutral ways to fund potential Bitcoin investments, possibly using tariff revenue or re-evaluating gold certificates to free up funds.

Comparing Bitcoin and Gold Market Caps

The vision of Bitcoin reaching $1 million is directly tied to it potentially matching gold’s market capitalization. This comparison is crucial because gold has historically served as a store of value and inflation hedge, roles that Bitcoin proponents argue it can fulfill, perhaps even better.

Bridging this gap requires a significant increase in Bitcoin’s value and broader acceptance as a global reserve asset or store of value.

In Summary

The Bitcoin price prediction of $1 million by 2029, put forth by Bitwise‘s research head, is ambitious but grounded in observable trends. The increasing accessibility through the Bitcoin ETF, the potential for vast capital inflows from wirehouses, and the intriguing possibility of government Bitcoin adoption paint a picture of structural changes that could propel Bitcoin’s value significantly. While the path isn’t guaranteed, these factors suggest that the coming years could see Bitcoin’s Bitcoin market cap grow substantially, potentially challenging traditional safe havens like gold.