Key insights:
Bitwise predicts Bitcoin will hit $1.3 million by 2035, with an expected annual return of 28.3% surpassing traditional assets.
Institutional investors lead Bitcoin demand, with corporate holdings increasing and Strategy taking the lead in accumulation.
Limited supply, strong hodling, and macroeconomic factors set the stage for long-term Bitcoin price appreciation.
Crypto asset manager Bitwise has released updated forecasts for Bitcoin (BTC), aiming for a price of $1.3 million by 2035, driven by institutional demand and Bitcoin’s limited supply.
The report is part of Bitwise’s “Long-Term Capital Market Assumptions,” suggesting a compound annual growth rate (CAGR) of 28.3% over the next decade, significantly higher than traditional assets such as equities (6.2%), bonds (4.0%), and gold (3.8%).
While Bitwise’s conservative estimate foresees $1.3 million by 2035, alternative scenarios are provided. In an optimistic case, Bitcoin could reach $2.97 million (39.4% CAGR), while a pessimistic view predicts a drop to $88,005 (2% CAGR).
This broad range reflects the expected volatility in Bitcoin markets, even with rising institutional involvement.
Bitwise Chief Investment Officer Matt Hougan, along with analysts Ryan Rasmussen, Josh Carlisle, Mallika Kolar, Andre Dragosch, and strategist Juan Leon, notes that the Bitcoin market is shifting from retail-led to institutional-driven, influencing price movements.
Cointelegraph recently highlighted that over 75% of Bitcoin trading volume on Coinbase originates from institutional investors, a level typically linked with significant price fluctuations. This participation has intensified, with demand outpacing daily mining output by up to six times, creating notable supply-demand imbalances.
This dynamic shift is apparent in recent market trends. Corporate Bitcoin adoption has surged, with 35 publicly traded firms now holding at least 1,000 BTC each, up from 24 at the end of Q1 2025. Total corporate Bitcoin acquisitions rose 35% from Q1 to Q2 2025, from 99,857 BTC to 134,456 BTC.
Strategy (formerly MicroStrategy) continues to lead in corporate acquisitions, recently making its fourth monthly Bitcoin purchase, totaling over 632,457 BTC valued at more than $71 billion. The company boasts over 53% unrealized gains on its Bitcoin holdings, totaling $25 billion in unrealized profits.
Related: Bitcoin megaphone pattern targets $260K as BTC price screams ‘oversold’
Bitcoin supply scarcity and macroeconomic support create ideal conditions
With 94.8% of the total BTC supply already circulating and annual issuance decreasing to 0.2% by 2032 from 0.8%, Bitwise asserts that new Bitcoin production will struggle to meet growing institutional demand. Unlike traditional commodities, Bitcoin’s supply cannot be increased regardless of price growth.
Bitwise highlights that “the inelastic supply of Bitcoin, combined with ongoing demand growth, serves as the primary driver of our long-term projections.”
This scarcity is further intensified as approximately 70% of Bitcoin supply has remained idle for at least one year, reflecting strong hodling behavior among current holders.
Increasing worries about fiat currency devaluation bolster Bitcoin’s appeal. US federal debt has risen by $13 trillion over five years to $36.2 trillion, with annual interest payments now at $952 billion, marking the fourth-largest federal budget item. As interest rates exceed anticipated GDP growth, pressure on traditional currencies escalates.
The combination of limited supply, rapid institutional adoption, and macroeconomic uncertainty fosters what analysts term a “perfect storm” for Bitcoin price increases.
With miners producing only 450 BTC daily while institutions withdraw over 2,500 BTC within 48 hours, the supply-demand disparity seems poised to ignite significant price discovery in the coming decade.
Related: Bitcoin trend reversal to $118K or another drop to $105K: Which comes first?
This article does not offer investment advice or recommendations. Every investment and trading decision carries risks, and readers should perform their own research when considering options.
