TLDR
- Bitwise forecasts Bitcoin price to hit $1.3 million by 2035, with a projected 28.3% annual growth rate
- Institutional investors now dominate Bitcoin markets, with demand exceeding daily mining production by up to six times
- Corporate Bitcoin holdings are increasing rapidly, with 35 public companies now holding at least 1,000 BTC
- Limited supply (94.8% of total BTC already in circulation) combined with strong holding behavior creates scarcity
- Rising concerns about fiat currency debasement and U.S. federal debt provide additional support for Bitcoin adoption
Crypto asset management firm Bitwise has released bold projections for Bitcoin’s future, forecasting a price target of $1.3 million per coin by 2035. The company’s “Long-Term Capital Market Assumptions” report outlines a compound annual growth rate of 28.3% over the next decade, far outpacing traditional assets like stocks, bonds, and gold.
The report presents multiple scenarios for Bitcoin’s future. While the base case projects $1.3 million by 2035, a more bullish outlook suggests potential for $2.97 million (39.4% CAGR). A bearish scenario estimates a more modest growth to $88,005 (2% CAGR).
If these projections materialize, Bitcoin’s market capitalization would reach nearly $28 trillion, more than double the current value of the global gold market. This transformation would position Bitcoin as a direct competitor to traditional stores of value like gold and U.S. Treasuries.
The cryptocurrency landscape has evolved dramatically in recent years. According to Bitwise’s team of analysts, Bitcoin is no longer primarily driven by retail investors. Institutional flows now dominate price action, with over 75% of Bitcoin trading volume on Coinbase coming from institutional investors.
Bitwise’s new long-term outlook puts #Bitcoin’s bull case at $2.9M by 2035.
Their base case: $1.3M. pic.twitter.com/z9e02UD3xy
— TFTC (@TFTC21) August 25, 2025
This shift in market dynamics has created a supply-demand imbalance. Current institutional demand exceeds daily mining production by up to six times, putting upward pressure on prices.
Institutional Adoption Accelerates
Corporate Bitcoin adoption has gained momentum rapidly. Currently, 35 publicly traded companies hold at least 1,000 BTC each, up from 24 companies at the end of Q1 2025. Total corporate Bitcoin purchases increased 35% quarter-over-quarter in Q2 2025, rising from 99,857 BTC to 134,456 BTC.
Strategy (formerly MicroStrategy) leads corporate accumulation. The company recently announced its fourth monthly Bitcoin purchase, bringing total holdings to over 632,457 BTC valued at more than $71 billion. Strategy currently enjoys over 53% unrealized gains on its Bitcoin investment, totaling $25 billion in unrealized profits.
Bitcoin’s limited supply plays a crucial role in these projections. With 94.8% of the total supply already in circulation and annual issuance dropping to 0.2% by 2032 from the current 0.8%, new production cannot meet rising institutional demand.
Unlike traditional commodities, Bitcoin’s supply cannot increase regardless of price appreciation. This inelastic supply, combined with growing demand, forms the foundation of Bitwise’s long-term assumptions.
Adding to this scarcity, approximately 70% of Bitcoin supply has remained unmoved for at least one year. This indicates strong holding behavior among existing investors, further restricting available supply in the market.
Macroeconomic Tailwinds
Macroeconomic factors provide additional support for Bitcoin adoption. U.S. federal debt has increased by $13 trillion over five years to $36.2 trillion, with annual interest payments reaching $952 billion—the fourth-largest federal budget item.
As interest rates exceed expected GDP growth, pressure on traditional currencies intensifies. Concerns about fiat currency debasement have pushed investors toward hard assets like Bitcoin. Bitwise notes that $10,000 held in U.S. dollars in 2015 has lost around 40% of its value.
Bitcoin’s portability and finite supply position it as a modern counterpart to gold for those seeking inflation protection. This perception has helped drive institutional interest in the cryptocurrency.
The convergence of limited supply, accelerating institutional adoption, and macroeconomic uncertainty creates what analysts describe as ideal conditions for Bitcoin price appreciation. With miners producing only 450 BTC daily while institutions withdraw over 2,500 BTC in 48-hour periods, the supply-demand imbalance appears set to drive price discovery over the coming decade.
Despite the optimistic outlook, Bitwise acknowledges several risks. Regulatory shifts remain a major concern, especially potential changes to laws governing custody, taxes, or access to ETFs. Adoption may also be slowed by macroeconomic shocks, technological competition, or liquidity issues.
The company anticipates recurring 30-60% drawdowns even as overall volatility decreases. These fluctuations represent a natural part of Bitcoin’s maturation process as it transitions from a speculative asset to a core component of global portfolios.
Bitwise’s base case projection of $1.3 million by 2035 represents a 28.3% compound annual growth rate from current prices of around $112,000.
