Bitwise predicts BTC will reach $1.3M in 2035

The key takeaways

• Bitwise projects that Bitcoin’s price will surpass $1.3 million dollars by 2035. The projected annualized return of 28.3% is higher than traditional investments.

• Corporate holdings are surging, and Strategy is leading the way in accumulation.

• A combination of limited supply, high hodling and macroeconomic factors creates the conditions for Bitcoin to grow over time.

Crypto asset management firm Bitwise released New Bitcoin projections (BTCThe 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. The bullish scenario could lead to Bitcoin reaching $2.97million (39.4% growth rate), whereas the bearish scenario indicates a possible downside of $88,005(2% CAGR).

The range of prices reflects the volatility that Bitcoin markets still exhibit despite increased institutional participation.

Matt Hougan’s chief investment officer, along with analysts Ryan Rasmussen and Josh Carlisle as well as Mallika Kolar, Andre Dragosch and Juan Leon the strategist, reveal that Bitcoin has no longer been a market driven by retail, but rather institutional flows are now driving price movement. 

Cointelegraph has recently been updated reported Over 75% of Bitcoin volume traded on Coinbase is from institutional investors. This level has historically been associated with significant price changes. The level of demand has grown so high that it exceeds the daily production up to 6 times. This creates a significant imbalance between supply and demand.

Recent market development also reflects the 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 is leading the corporate accumulation. 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 totaling unrealized profits.

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

Bitcoin scarcity and macroeconomic tailwinds combine to create the perfect storm

Bitwise states that the new Bitcoin supply cannot keep up with rising demand. Bitcoin is unlike other commodities in that its supply can’t be increased no matter how much the price rises.

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

The scarcity of Bitcoin is exacerbated because 70% of the supply has remained unchanged for more than a year. This indicates a strong hodling behaviour among current holders.

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. The pressure on the traditional currency increases as interest rates are higher than expected GDP growth.

Analysts describe a convergence between limited supply, institutional adoption accelerating, and macroeconomic insecurity as “a”. “perfect storm” Bitcoin’s price is on the rise.

Supply-demand imbalances are likely to lead to significant price increases over the next decade.

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

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.