Bitcoin Could Reach $1.3 Million by 2035, Predicts Crypto Asset Manager Bitwise
By Will Canny | August 22, 2025
Crypto asset management firm Bitwise has released a bold forecast for the future price of Bitcoin (BTC), projecting that the world’s leading cryptocurrency could soar to $1.3 million per coin by the year 2035. This projection points to a massive surge over the next decade, driven by increasing institutional adoption, demand for inflation protection, and Bitcoin’s inherent fixed supply.
A Decade of Exceptional Growth
Bitwise’s analysis suggests that Bitcoin will become the best-performing institutional asset over the next ten years, with an implied compound annual growth rate (CAGR) of approximately 28.3%. Such returns would vastly outperform most traditional financial assets and indexes.
The prediction was published as Bitcoin’s price recently breached the $100,000 mark, fueled in part by clearer regulatory environments and growing interest from institutional investors worldwide.
Key Drivers Behind the Bullish Outlook
According to Matt Hougan, Chief Investment Officer at Bitwise, the cryptocurrency’s growth potential is underpinned by three main factors:
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Institutional-Grade Asset Status: Bitcoin is maturing into a mainstream, institutional-level investment, garnering attention from major financial institutions, hedge funds, and corporate treasuries.
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Inflation Hedge Demand: In a persistently inflationary macroeconomic setting, investors are increasingly seeking assets that can serve as a store of value. Bitcoin’s decentralized, scarce nature makes it an attractive option for hedging inflation risk.
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Fixed Supply: Unlike fiat currencies, Bitcoin’s supply is capped at 21 million coins, with its new issuance rate declining according to predetermined protocol rules. This scarcity is expected to drive significant price appreciation as demand rises.
Shift from Traditional Bitcoin Cycles
The report also notes a pivotal change in Bitcoin’s market behavior, declaring the established "historic four-year cycle" theory, which many traders have relied upon, as obsolete. Despite the maturation of the asset, Bitwise warns that investors should still prepare for steep price drawdowns and considerable volatility—even if overall fluctuations moderate compared to past market cycles.
Risks and Cautions
Bitwise highlights several risks that could temper or delay Bitcoin’s upward trajectory, including regulatory interventions, legislative changes in major economies, and the challenges posed by Bitcoin’s relatively short history compared to traditional assets.
Emerging technological risks, such as the potential impact of quantum computing on blockchain security, are currently considered secondary concerns by the firm.
Furthermore, Bitwise emphasizes the inherent uncertainty in long-term Bitcoin forecasting due to limited historical data and the evolving nature of modeling approaches. The firm asserts a conservative stance in its estimations to mitigate these uncertainties.
Market Reaction and Outlook
Bitcoin’s recent rally above $100,000 has coincided with a broader wave of institutional interest and clearer regulatory frameworks, contributing to optimism about the future of digital assets. If Bitwise’s projection holds, Bitcoin’s price increase would mark one of the most extraordinary investment performances in modern financial history.
For those interested, Bitwise’s full report includes comprehensive insights into market drivers, risks, and analytical methodologies shaping their outlook on Bitcoin and the broader cryptocurrency landscape.
About the Author:
Will Canny is a seasoned market reporter with extensive experience in the financial services sector. He covers cryptocurrency markets at CoinDesk and holds a personal investment in the SOL token.
Disclaimer: This article includes content generated with AI assistance and was reviewed by CoinDesk’s editorial team to ensure accuracy and adherence to editorial standards.
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