Bitcoin News: Bitcoin Price Could Reach $1.3 Million by 2035 as Institutional Demand Surges, Says Bitwise
Key TakeawaysBitwise projects Bitcoin (BTC) to hit $1.3 million by 2035, implying a 28.3% annualized return.Institutional adoption now dominates Bitcoin demand, with corporate holdings up 35% QoQ.Supply scarcity, hodling behavior, and rising U.S. debt create a “perfect storm” for long-term growth.Crypto asset manager Bitwise has released a bold forecast for Bitcoin (BTC $112,451), projecting prices could climb to $1.3 million by 2035 as institutional adoption accelerates and supply tightens.The prediction is outlined in Bitwise’s Long-Term Capital Market Assumptions report, which models a 28.3% compound annual growth rate (CAGR) for Bitcoin over the next decade — far outpacing equities (6.2%), bonds (4.0%), and gold (3.8%).Bullish, Bearish, and Base Case ScenariosWhile the base case sets a $1.3M target, Bitwise provides multiple scenarios:Bullish Case: Bitcoin reaches $2.97M (39.4% CAGR).Bearish Case: BTC trades at $88,005 (2% CAGR).The wide range reflects Bitcoin’s inherent volatility despite stronger institutional flows.Institutions Drive Bitcoin DemandChief Investment Officer Matt Hougan and analysts Ryan Rasmussen, Josh Carlisle, Mallika Kolar, Andre Dragosch, and Juan Leon highlighted that Bitcoin is no longer a retail-driven asset.Over 75% of Coinbase’s BTC trading volume now comes from institutional investors, a level historically tied to major price moves. Demand has at times exceeded six times daily mining production, intensifying supply pressures.Corporate adoption is also accelerating:35 publicly traded firms now hold at least 1,000 BTC each (up from 24 in Q1 2025).Corporate Bitcoin purchases grew 35% quarter-over-quarter in Q2 2025.MicroStrategy continues to lead, with 632,457 BTC ($71B) and over $25B in unrealized profits.Bitcoin Scarcity Meets Macroeconomic PressuresBitwise stresses that inelastic supply is Bitcoin’s defining feature. With 94.8% of supply already mined and annual issuance dropping to just 0.2% by 2032, new production cannot meet institutional demand.Around 70% of Bitcoin supply has remained unmoved for over a year, reflecting strong long-term holder conviction.Meanwhile, macroeconomic conditions add fuel to Bitcoin’s appeal as a hedge. U.S. federal debt has risen $13 trillion in five years to $36.2T, with interest payments now $952B annually, the fourth-largest federal budget item. With interest rates outpacing GDP growth, fiat debasement fears remain elevated.A “Perfect Storm” for Bitcoin’s Next DecadeWith miners producing only 450 BTC daily against institutional withdrawals of 2,500 BTC over 48 hours, Bitwise describes the setup as a perfect storm for price discovery.“The inelastic supply of Bitcoin, combined with continued demand growth, is the single most important driver of our long-term assumptions,” Bitwise wrote.If projections hold, Bitcoin could cement its role as a superior store of value relative to traditional assets, reshaping institutional portfolios worldwide, according to Cointelegraph.