The scenario where financial markets seek resilient assets from Bitwise, a specialized cryptocurrency investment company, projects the promising future of Bitcoin (BTC).
In a report on August 21, the company, in its opinion, has boosted the growth of digital currency; We expect a price of $1.3 million by 2035the annual growth rate is 28.3%.
Bitwise attributes this projection to three main elements: First, Bitcoin integrates its status as a system asset and generates a certain amount of capital flow.
Second, institutional investors are seeking more and more “hard” activity as protection against inflation.
Finally, the limited offers of Bitcoin, which totals only 21 million units, is strengthening its value against increasing demand. but, The company warns that this upward trend will involve significant volatilityalthough less than historically observed.
Bitcoin institutional adoption will grow in the future
According to the World Bank, institutional investors who manage roughly $100 billion in assets, They can allocate 1% to 5% of their portfolio to Bitcoin over the next decade.
This means an investment of between $1-5 billion. Currently, Bitcoin’s investment products have already processed $170 million, but Bitwise considers it the first.
The purchasing pressures at these institutions, coupled with a bitcoin shortfall of around $180 million a year at current prices, will raise the rising prices.
Unlike other emerging assets such as private capital and credit, Bitcoin was initially adopted by retail investors. Today, around 95% of existing Bitcoin belongs to these investorsmost institutional things still have no display.
According to Bitise, this dynamic creates a high demand scenario for reduced availability, along with strict supply restrictions.
Bitcoin prices are risky
Despite his optimism, Bitwise recognizes the risks that could stop his prognosis. The main thing is Regulatory and legislative changes A derivative of an unpredictable political environment.
Furthermore, as a relatively new asset, BTC lacks a broad history of uncertainty. There’s little concern, but the company mentions the theoretical risks of quantum computing that could undermine Bitcoin’s encryption, but as Cryptootics reported, current technical restrictions minimize this threat.
Bitwise admits that Models that predict Bitcoin performance are incomplete and evolve with limited data. Therefore, he takes a conservative approach in his estimation, taking into account the novelty and volatility of his assets.
Additionally, the company shows Harving, an event that reduces Bitcoin’s four-part broadcasts, has “lost-relevant,” but the market continues to face a major setback.
Other projections of Bitcoin
Bernstein’s company has included Bitcoin in 2026 – $150,000 – $200,000 in 2026, and $500,000 in 2029, and In 2033, a million dollars, bullish cycle was interrupted by a bearish era.
Strategy president Michael Saylor has forecast a price of $21 million over 21 years. These estimates, although with variations such as bitwise, enhance awareness of sustained growth.
The company emphasizes that Bitcoin maintains a low correlation with actions, bonds and other types of assets, making it an attractive option for diversifying your wallet. His combination of shortages, early retail adoption and increased institutional profits positions it as a unique asset in financial panorama. The company concludes that, Despite the risks, Bitcoin is moving forward to become the best performance institution asset in the next decade.
