Bitwise expects BTC to reach $1.35M in 2035

Takeaways from the conference:

• Bitwise predicts that Bitcoin will reach $1,3 million in 2035. This is a 28.3% return on an annualized basis.

• The demand for Bitcoin is dominated by institutional investors, while corporate holdings and Strategy are leading in the accumulation.

• The combination of macroeconomic forces, limited supply and strong hodling creates a favorable environment for Bitcoin’s long-term price increase.

Crypto asset management firm Bitwise released Bitcoin: New projectionsBTCThe limited Bitcoin supply and institutional demand are driving the price to $1.3million by 2035.

The report published as part of Bitwise’s ‘Long-Term Capital Market Assumptions’ for Bitcoin projects a 28.3% compound annual growth rate (CAGR) over the next decade, significantly outpacing traditional assets like equities (6.2%), bonds (4.0%), and gold (3.8%).

The firm offers multiple scenarios. While Bitwise’s base case predicts $1.3 million in 2035, it also provides other possible outcomes. A bullish scenario could see Bitcoin reach $2.97m (39.4% annualized CAGR) while a negative case would suggest a potential fall to $88,005 (2.0% CAGR).

This wide variation reflects that Bitcoin markets will still be volatile despite the increased participation of institutional investors.

Matt Hougan (chief investment officer), along with Ryan Rasmussen, Josh Carlisle, Mallika Kolar, Andre Dragosch, and Juan Leon (strategist), reveals Bitcoin is not longer a market driven by the retail sector, but rather institutional flows are now driving price movements. 

Cointelegraph has recently been updated reported The fact that institutional investors account for over 75% the Bitcoin trading volume at Coinbase, historically a high level of participation has been linked to major price fluctuations. It is estimated that the level of Bitcoin trading volume on Coinbase has increased to a point where demand exceeds daily production up to 6 times.

Market developments in the last few months also show a change. Bitcoin adoption by corporations has increased. accelerated The number of publicly-traded companies holding 1,000 BTC or more has increased dramatically. There were only 24 at the end Q1 2025. The total corporate Bitcoin purchases increased by 35% in Q2 2020, from 99 857 BTC up to 134 456 BTC.

MicroStrategy leads corporate acquisition signaling The company made its fourth Bitcoin purchase of the month on August 25, increasing total Bitcoin holdings by over 632 457 BTC worth more than $71 Billion. The company represents Unrealized Bitcoin gains of over 53%, or $25 billion total, on the investment.

Related: Bitcoin megaphone pattern targets $260K as BTC price screams ‘oversold’

Bitcoin shortage and macroeconomic tailwinds are a perfect storm

Bitwise states that the new Bitcoin supply cannot keep up with rising demand. Bitcoin supply is not able to be increased despite price increases, unlike traditional commodities.

Bitwise highlights that “the inelastic supply of Bitcoin, combined with continued demand growth, is the single most important driver of our long-term assumptions.”

Around 70% of Bitcoin’s supply is still unallocated after at least a year. That indicates that existing Bitcoin holders are hodling.

Bitcoin adoption is gaining momentum due to the growing concern about devaluation of fiat currencies. US federal debt has risen by 13 trillion dollars in the last five years. Annual interest payments have reached $952 Billion, which is fourth on federal budget. Pressure on traditional currencies increases when interest rates surpass expected GDP growth.

What analysts call a “convergence” of macroeconomic uncertainties, limited supply and accelerating adoption by institutions, is the result. “perfect storm” Bitcoin’s price is on the rise.

The supply-demand gap is a major factor in the price changes that will occur over the next decade. Miners are producing 450 BTC per day, while the institutions have withdrawn over 2,500 BTC within 48 hours.

Related: Bitcoin trend reversal to $118K or another drop to $105K: Which comes first?

The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.