Bitcoin Price: Bitwise Unveils Unprecedented $1.3M Target by 2035
The cryptocurrency world is buzzing with a **stunning Bitcoin price prediction**. Asset management firm Bitwise recently unveiled a bold forecast, projecting that Bitcoin (BTC) could reach an astonishing $1.3 million by 2035. This **Bitwise Bitcoin forecast** is not mere speculation; it stems from a comprehensive analysis highlighting several powerful market forces. Specifically, the report emphasizes surging institutional Bitcoin demand, the asset’s inherent supply scarcity, and persistent global macroeconomic pressures. This outlook suggests a significant shift in how mainstream finance views the leading cryptocurrency.
Bitwise’s Long-Term Capital Market Assumptions: A Deep Dive into Bitcoin Price Prediction
Bitwise’s latest ‘Long-Term Capital Market Assumptions’ report for Bitcoin paints a remarkably optimistic picture for the asset’s future. The firm projects an impressive 28.3% compound annual growth rate (CAGR) for Bitcoin over the next decade. This growth rate significantly outpaces traditional asset classes. For instance, equities typically see around 6.2% CAGR, bonds 4.0%, and gold a mere 3.8%. This stark contrast positions Bitcoin as a compelling, high-growth investment for long-term portfolios. Indeed, the report suggests Bitcoin’s potential to redefine investment benchmarks.
While the base case firmly sets the **Bitcoin price prediction** at $1.3 million by 2035, Bitwise also explored various scenarios. A highly bullish outlook sees Bitcoin soaring to $2.97 million, achieving an astounding 39.4% CAGR. Conversely, a bearish scenario suggests a more modest $88,005, reflecting a 2% CAGR. This wide range underscores Bitcoin’s continued volatility, even as institutional participation grows. However, the probability assigned to the base case suggests a strong conviction in the outlined drivers. Investors should carefully consider these scenarios when evaluating Bitcoin’s future.
Institutional Bitcoin Demand: The New Market Driver
The landscape of Bitcoin investment has fundamentally changed. Chief Investment Officer Matt Hougan and his team at Bitwise highlight a crucial shift: Bitcoin is no longer primarily a retail-driven market. Instead, institutional flows now dictate much of the price action. This growing **institutional Bitcoin demand** represents a maturation of the asset class. Crypto News Insights recently reported that institutional investors account for over 75% of Bitcoin trading volume on Coinbase. Historically, such high levels of institutional engagement often precede major price movements, signaling robust market confidence. This substantial influx of capital creates significant demand pressure.
Furthermore, this institutional appetite now significantly exceeds the daily mining production of Bitcoin. Demand currently outstrips new supply by up to six times, creating a stark supply-demand imbalance. This dynamic is a powerful catalyst for price appreciation. Corporate Bitcoin adoption has also accelerated dramatically. Presently, 35 publicly traded companies hold at least 1,000 BTC each. This figure marks a substantial increase from 24 companies at the end of Q1 2025. Total corporate Bitcoin purchases surged by 35% quarter-over-quarter in Q2 2025, rising from 99,857 BTC to 134,456 BTC. MicroStrategy, a prominent corporate holder, exemplifies this trend. The company made its fourth monthly Bitcoin purchase on August 25, bringing its total holdings to over 632,457 BTC, valued at more than $71 billion. This represents over $25 billion in unrealized profits, showcasing the profound impact of long-term Bitcoin investment for corporations.
Bitcoin Supply Scarcity: An Inelastic Asset in High Demand
One of Bitcoin’s most compelling attributes is its finite supply. With 94.8% of the total BTC supply already in circulation, and annual issuance set to drop to a mere 0.2% by 2032 (from 0.8%), new Bitcoin production simply cannot keep pace with rising institutional demand. This inherent **Bitcoin supply scarcity** differentiates it sharply from traditional commodities or fiat currencies. Unlike gold, where new discoveries can increase supply, or fiat, which central banks can print endlessly, Bitcoin’s supply cap of 21 million coins is immutable. This fixed supply, combined with escalating demand, forms the bedrock of Bitwise’s long-term assumptions.
The scarcity narrative is further strengthened by the behavior of existing holders. Approximately 70% of the total Bitcoin supply has remained unmoved for at least one year. This strong ‘hodling’ behavior indicates a long-term conviction among investors, reducing the readily available supply on exchanges. As a result, even small increases in demand can have a disproportionately large impact on price. This inelastic supply, coupled with relentless demand growth, establishes a powerful foundation for future price appreciation. The halving events, which periodically cut the new supply of Bitcoin, only intensify this scarcity, reinforcing its value proposition as a digital asset.
Macroeconomic Pressures Crypto: A Catalyst for Adoption
Beyond institutional interest and supply dynamics, broader macroeconomic factors play a critical role in Bitcoin’s appeal. Rising global concerns about fiat currency debasement are driving increased adoption of alternative assets like Bitcoin. The United States, for example, faces a rapidly expanding federal debt, which has ballooned by $13 trillion over five years to reach $36.2 trillion. Alarmingly, annual interest payments on this debt have climbed to $952 billion, now ranking as the fourth-largest federal budget item. When interest rates consistently exceed expected GDP growth, the pressure on traditional currencies intensifies. This situation makes assets with a fixed supply, like Bitcoin, increasingly attractive as a hedge against inflation and economic instability.
Many investors and institutions view Bitcoin as a reliable store of value, a ‘digital gold’ in an era of unprecedented monetary expansion. This perception of Bitcoin as a hedge against **macroeconomic pressures crypto** markets. The erosion of purchasing power in fiat currencies pushes investors toward assets that cannot be devalued by government decree. Consequently, the ongoing concerns about sovereign debt, inflation, and currency debasement provide a powerful, underlying tailwind for Bitcoin’s long-term growth. As traditional financial systems grapple with these challenges, Bitcoin offers a compelling alternative for preserving wealth.
The Perfect Storm: Unlocking Bitcoin’s Future Potential
The convergence of these powerful forces creates what analysts describe as a “perfect storm” for Bitcoin price appreciation. Limited supply, accelerating institutional adoption, and profound macroeconomic uncertainty are aligning to propel Bitcoin into a new era of value discovery. The numbers starkly illustrate this imbalance: miners produce only 450 BTC daily, yet institutions are withdrawing over 2,500 BTC in 48-hour periods. This massive discrepancy between new supply and institutional absorption suggests that the market is poised for significant upward price adjustments over the coming decade.
Bitwise’s comprehensive analysis, therefore, offers more than just a price target; it provides a framework for understanding Bitcoin’s evolving role in the global financial system. The firm’s **Bitwise Bitcoin forecast** of $1.3 million by 2035 reflects a deep understanding of these intertwined dynamics. While no investment is without risk, the confluence of these factors paints a compelling picture for Bitcoin’s long-term trajectory. Investors are increasingly recognizing Bitcoin not merely as a speculative asset, but as a foundational component of a diversified portfolio, especially in an environment marked by economic uncertainty and a burgeoning digital economy. This powerful combination of factors sets the stage for an exciting future for Bitcoin.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
