Bitwise predicts: Bitcoin will soar to 1.3 million dollars by 2035, with an annual growth rate of up to 28%.

Asset management company Bitwise has made a stunning prediction in its latest report - by 2035, the price of Bitcoin (BTC) could break through $1.3 million, with an expected annualized return of 28.3% over the next decade, surpassing traditional assets such as stocks, bonds, and gold, becoming the “performance king” in institutional portfolios. Analysts point out that the explosive demand from institutions and the rigid constraints on Bitcoin supply will be the core engine driving this long-term bull run.

Price Prediction: 10x in Ten Years

The Bitwise analysis team believes that Bitcoin will maintain a strong growth momentum over the next decade and is expected to become the best-performing institutional asset globally.

The report indicates that global institutional investors controlling 100 trillion dollars in assets, if they allocate 5% to Bitcoin, would generate an additional demand of 1 trillion to 5 trillion dollars. This scale of funding is sufficient to drive the BTC price to a historical high of 1.3 million dollars by 2035.

Three Major Driving Factors: Institutional Demand, Supply Cap, Macro Environment

The analysis team led by Bitwise Chief Investment Officer Matt Hougan points out that the logic behind Bitcoin’s long-term rise is built on three core drivers:

1. Institutional demand continues to grow

The popularity of ETFs and the promotion by asset management companies are rapidly bringing Bitcoin into the mainstream of institutional investment.

As a “hard asset” to hedge against inflation and currency devaluation, Bitcoin is being seen as a digital substitute for gold.

2. Supply is inelastic

The supply limit of Bitcoin is 21 million coins, and no matter how much demand increases, the rate of production will not change.

Unlike major commodities such as gold, the “scarcity” of Bitcoin is completely verifiable and immutable.

3. Macroeconomic and Monetary Landscape Changes

The debt of major economies continues to rise, challenging the status of the US dollar as the global reserve currency.

The portability, ease of storage, and ease of verification of Bitcoin may make it a new generation strategic reserve asset for central banks and governments.

Long-term Market Structure Changes and Risks

Bitwise believes that as institutional funds dominate the market, the traditional “four-year halving cycle” of Bitcoin will gradually lose its influence, and market fluctuations will be more dependent on capital inflows and the macro environment, rather than a single block reward adjustment.

In addition, analysts expect that the long-term correlation between Bitcoin and stocks and bonds will remain low, as the factors driving prices are entirely different.

However, the report also warns investors that Bitcoin still faces multiple risks, including:

1. Limited historical performance data

2. The uncertainty of global crypto regulation

3. The technical challenges that quantum computing may bring

4. The impact of macroeconomic shocks on market sentiment

As of the time of writing, BTC is at 111,600 USD, up about 1% for the day, with a significant upside potential remaining to Bitwise’s long-term target.

Conclusion

Bitwise’s $1.3 million long-term target paints an attractive growth curve for Bitcoin. The continuous influx of institutional demand and rigid supply provide a solid economic foundation for this forecast. However, investors still need to pay attention to uncertainties in regulation, technology, and the macro environment. In the next decade, Bitcoin may truly complete its transition from “digital gold” to “global strategic asset.” For more real-time market data and in-depth analysis, please follow the official Gate platform.