Bitwise Predicts Bitcoin Price Surge
- Bitwise forecasts Bitcoin price to reach $1.3 million by 2035, projecting 28.3% annualized returns that outpace traditional assets.
- Institutional investors dominate Bitcoin demand, with corporate holdings surging and Strategy leading in accumulation.
Crypto asset management firm Bitwise has unveiled new predictions for Bitcoin (BTC), estimating a price target of $1.3 million by 2035. This forecast is propelled by institutional demand and the finite supply of Bitcoin.
The report, released as a component of Bitwise’s ‘Long-Term Capital Market Assumptions’ for Bitcoin, anticipates a compound annual growth rate (CAGR) of 28.3% over the next decade, which significantly exceeds the performance of traditional assets like equities (6.2%), bonds (4.0%), and gold (3.8%).
While Bitwise’s base case foresees a value of $1.3 million by 2035, the firm also outlines several scenarios. In a bullish case, Bitcoin might soar to $2.97 million (39.4% CAGR), whereas a bearish outlook suggests a potential dip to $88,005 (2% CAGR).
This broad range illustrates the inherent volatility that is still anticipated in Bitcoin markets, even as institutional participation grows.
Chief Investment Officer Matt Hougan, alongside analysts Ryan Rasmussen, Josh Carlisle, Mallika Kolar, Andre Dragosch, and strategist Juan Leon, has indicated that Bitcoin has transitioned from a retail-driven market to one dominated by institutional flows that now largely influence price movements.
It’s recently reported that more than 75% of Bitcoin trading volume on Coinbase originates from institutional investors, a figure historically linked to significant price changes. The intensity of this participation means that demand currently outstrips daily mining output by a factor of up to six, resulting in considerable supply-demand mismatches.
The shift in market dynamics is also reflected in recent developments. Corporate adoption of Bitcoin has surged, with 35 publicly traded companies now holding at least 1,000 BTC each, up from 24 at the end of Q1 2025. Total corporate Bitcoin purchases saw a 35% increase quarter-over-quarter in Q2 2025, climbing from 99,857 BTC to 134,456 BTC.
MicroStrategy remains at the forefront of corporate accumulation, having announced its fourth monthly Bitcoin purchase on Aug. 25, bringing its total holdings to over 632,457 BTC valued at over $71 billion. This represents more than 53% unrealized gains on its Bitcoin investments, amounting to $25 billion in unrealized profits.
With 94.8% of the total BTC supply already circulating and annual issuance dropping from 0.8% to 0.2% by 2032, Bitwise highlights that new Bitcoin production is insufficient to satisfy growing institutional demand. Unlike traditional commodities, Bitcoin’s supply cannot be increased, no matter how much its price appreciates.
Bitwise asserts that “the inelastic supply of Bitcoin, combined with continued demand growth, is the single most important driver of our long-term assumptions.”
This scarcity is further intensified by roughly 70% of Bitcoin supply remaining dormant for at least one year, indicating a strong tendency among holders to retain their investments.
Concerns surrounding the debasement of fiat currencies further bolster the case for Bitcoin adoption. The US federal debt has risen by $13 trillion over five years, now totaling $36.2 trillion, with annual interest payments reaching $952 billion, making it the fourth-largest item in the federal budget. As interest rates surpass projected GDP growth, stress on traditional currencies becomes more pronounced.
The combination of limited supply, accelerating institutional adoption, and macroeconomic uncertainty is generating what analysts refer to as a “perfect storm” for Bitcoin price appreciation.
With miners producing just 450 BTC daily, while institutions withdraw over 2,500 BTC within 48-hour periods, the ongoing supply-demand imbalance seems set to drive significant price discovery in the upcoming decade.
This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers are encouraged to conduct their own research before making any choices.
