Bitwise Projects Bitcoin to Hit $1.3M by 2035, Citing Institutional Growth and Inflation Hedging

Bitwise Asset Management has forecasted that bitcoin (BTC) could reach $1.3 million by 2035, driven by accelerating institutional adoption, increasing demand for inflation-resistant assets, and the cryptocurrency’s capped supply.

In a report released Thursday, Bitwise analysts—led by Chief Investment Officer Matt Hougan—argue that bitcoin is poised to become the best-performing institutional asset over the next decade. The projection assumes a 28.3% compound annual growth rate (CAGR), far outpacing traditional asset classes.

The bullish outlook coincides with bitcoin’s surge past $100,000 amid heightened regulatory clarity and growing interest from major financial institutions.

Three primary factors underpin the firm’s thesis:

1. Bitcoin’s continued maturation as an institutional-grade asset.
2. Rising appetite for scarce, hard assets in an inflationary global environment.
3. The fixed and diminishing nature of bitcoin’s new supply issuance.

Bitwise also said that the commonly cited four-year cycle theory—once a cornerstone for bitcoin market predictions—no longer applies, citing evolving macro dynamics and structural market changes.

Despite the optimism, the firm acknowledges risks, including potential regulatory headwinds, policy shifts in key jurisdictions, and the challenges inherent in a still-maturing asset class. Technological threats such as quantum computing were flagged as longer-term concerns but not immediate barriers.

“Forecasting bitcoin’s trajectory is inherently uncertain,” the report noted. “Our model is designed with conservative assumptions and acknowledges the limitations of historical data.”

Bitwise’s long-term view adds to a growing chorus of institutional voices positioning bitcoin as a core portfolio asset in the coming decade.