TLDR
- Bitwise forecasts Bitcoin could reach $1.3 million by 2035, representing 28.3% annual growth
- Institutional investors now dominate Bitcoin trading, accounting for over 75% of Coinbase volume
- Corporate Bitcoin holdings increased 35% in Q2 2025, with 35 public companies holding 1,000+ BTC each
- Bitcoin supply scarcity intensifies as daily mining produces only 450 BTC while institutions withdraw 2,500+ BTC in 48 hours
- US federal debt reaching $36.2 trillion creates macroeconomic pressure supporting Bitcoin adoption
Bitwise Asset Management released new projections for Bitcoin, setting a base case price target of $1.3 million by 2035. The crypto asset management firm oversees more than $15 billion in assets.
The forecast represents a compound annual growth rate of 28.3% over the next decade. This projection outpaces traditional assets like equities at 6.2%, bonds at 4.0%, and gold at 3.8%.
Bitwise provides multiple scenarios beyond its base case. A bullish scenario could see Bitcoin reach $2.97 million, delivering 39.4% annual returns.
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
The bearish case suggests potential downside to $88,005, representing 2% annual growth. These wide ranges reflect expected volatility despite growing institutional participation.
If the base case materializes, Bitcoin’s market capitalization would climb to nearly $28 trillion. This figure exceeds double the current value of the global gold market.
The report identifies institutional adoption as the primary driver. Since US spot Bitcoin ETF approval in early 2024, institutional inflows have accelerated dramatically.
Institutional investors now account for over 75% of Bitcoin trading volume on Coinbase. This participation level historically correlates with major price movements.
Bitcoin Price Prediction
Corporate Bitcoin adoption has surged in recent quarters. Thirty-five publicly traded companies now hold at least 1,000 BTC each.
This represents an increase from 24 companies at the end of Q1 2025. Total corporate Bitcoin purchases rose 35% quarter-over-quarter in Q2 2025.
Corporate holdings increased from 99,857 BTC to 134,456 BTC during this period. Strategy, formerly MicroStrategy, leads corporate accumulation efforts.
The company completed its fourth monthly Bitcoin purchase recently. Strategy now holds over 632,457 BTC valued at more than $71 billion.
Strategy shows over 53% unrealized gains on its Bitcoin investment. The company reports $25 billion in unrealized profits from its Bitcoin holdings.
Supply Scarcity Creates Imbalance
Bitcoin supply dynamics create pressure for price appreciation. Currently, 94.8% of total BTC supply is already in circulation.
Annual Bitcoin issuance will drop to 0.2% by 2032 from the current 0.8%. New Bitcoin production cannot meet rising institutional demand.
Unlike traditional commodities, Bitcoin supply cannot increase regardless of price appreciation. Bitwise emphasizes this inelastic supply as the most important driver of long-term assumptions.
Approximately 70% of Bitcoin supply remains unmoved for at least one year. This behavior indicates strong holding patterns among existing owners.
Current demand exceeds daily mining production by up to six times. Miners produce only 450 BTC daily while institutions withdraw over 2,500 BTC in 48-hour periods.
US federal debt provides additional support for Bitcoin adoption. Federal debt has increased by $13 trillion over five years to $36.2 trillion.
Annual interest payments have reached $952 billion, making it the fourth-largest federal budget item. As interest rates exceed expected GDP growth, pressure on traditional currencies intensifies.
Bitwise notes that $10,000 held in US dollars since 2015 has lost around 40% of its value. Bitcoin’s portability and finite supply position it as a modern alternative to gold.
The convergence of limited supply, accelerating institutional adoption, and macroeconomic uncertainty creates favorable conditions. Current supply-demand imbalances appear positioned to drive price discovery over the coming decade.
