TLDR
- Bitwise predicts Bitcoin will reach $1.3-1.4 million by 2035 with 28.3% annual growth
- Major institutional platforms are now requesting long-term Bitcoin forecasts for the first time
- Growth drivers include institutional adoption, inflation-hedge demand, and Bitcoin’s fixed supply
- The traditional four-year Bitcoin cycle is considered obsolete by analysts
- Regulatory clarity and Bitcoin treasury companies are fueling institutional interest
Crypto asset manager Bitwise has released a forecast predicting Bitcoin will reach between $1.3 million and $1.4 million by 2035. The projection assumes a compound annual growth rate of 28.3% over the next decade.
The prediction comes as Bitcoin trades above $114,000 and has reached new all-time highs. Bitwise Chief Investment Officer Matt Hougan published the forecast in a report to investors this week.
Bitwise analysts expect Bitcoin to become the best-performing institutional asset over the next 10 years. The 28.3% annual returns would far exceed traditional assets like stocks or bonds.
The asset manager cites three main factors driving Bitcoin’s growth. First is Bitcoin’s emergence as an institutional-grade asset. Second is rising demand for hard assets during inflationary periods. Third is Bitcoin’s fixed supply schedule.
Institutional Interest Surges
For the first time in Bitcoin’s history, major institutional platforms are requesting long-term Bitcoin forecasts. Bitwise received 12 such requests in January 2025 alone.
These requests came from large national account platforms managing hundreds of billions or trillions of dollars in assets. Previously, zero major institutional platforms had asked for long-term Bitcoin projections.
The shift reflects Bitcoin’s evolution from a fringe investment to potential core portfolio allocation. Professional investors previously viewed Bitcoin as an opportunistic investment for portfolio edges.
Spot Bitcoin exchange-traded funds launched in January 2024 opened institutional access. These ETFs now hold approximately 1.2 million Bitcoin worth about $144 billion.
Treasury Companies Drive Demand
Bitcoin treasury companies have been accumulating coins rapidly. The top 100 Bitcoin treasuries hold roughly 983,816 Bitcoin worth about $113 billion.
This corporate adoption represents a new source of sustained demand. Companies are adding Bitcoin to their balance sheets as a treasury reserve asset.
The buying pressure from both ETFs and corporate treasuries creates additional demand beyond individual investors. This institutional participation provides more stability to Bitcoin’s price movements.
Regulatory developments have also supported institutional adoption. President Trump signed the Genius Act into law in July, marking the first major crypto legislation.
SEC Chair Paul Atkins announced “Project Crypto,” a deregulation campaign. This regulatory clarity reduces uncertainty for institutional investors.
Bitwise notes that Bitcoin’s historic four-year cycle thesis is no longer relevant. The traditional boom-bust pattern tied to Bitcoin halvings may be obsolete.
However, the firm warns investors should still expect steep drawdowns despite maturing volatility. Risk factors include regulatory shifts and legislative changes in major markets.
The projection assumes continued regulatory improvement and sustained institutional interest. It also assumes no catastrophic technical failures or major security breaches.
At current prices around $114,000, the forecast implies Bitcoin would reach $145,000 by year-end 2025. By 2027, the price would break $240,000 according to the model.
By 2030, Bitcoin would trade around $500,000 per coin. The final 2035 target represents a market capitalization of roughly $28 trillion.
This would make Bitcoin larger than the entire US Treasury market today. The market cap would exceed twice the current size of the gold market.
Bitwise acknowledges the forecast carries uncertainty given Bitcoin’s limited historical data. The firm states it aims to “err on the side of being conservative” in its projections.
Even if the prediction proves half correct, Bitcoin would reach $400,000-$700,000 by 2035. This would still represent returns far exceeding traditional asset classes over the same period.
