Bitcoin is entering a new phase of financial maturity with increasing institutional interest and new yield-generating strategies. Forecasts indicate its potential growth to $1 million by 2029.
Bitcoin Competing with Gold
Bitwise Asset Management forecasts that Bitcoin could reach $1 million per coin by 2029, fueled by rising institutional interest and structural inflows. André Dragosch, Head of European Research at Bitwise, stated, "Our prediction is $1 million by 2029."
Gold remains the largest asset class with a market capitalization exceeding $21.7 trillion, while Bitcoin's sits at around $1.9 trillion. Nonetheless, there is a belief that Bitcoin can be compared not only by valuation but also by perceived utility as a reliable store of value.
The Role of ETFs in Price Growth
A significant factor for Bitcoin's growth has been the rise of Bitcoin ETFs, which gained popularity in early 2024. Dragosch pointed to the success of BlackRock’s iShares Bitcoin Trust ETF. "These structural inflows could extend and intensify the current Bitcoin cycle," he added.
New financial instruments could elevate Bitcoin to a higher level, especially as financial firms like Merrill Lynch and Morgan Stanley have yet to open channels for these new products.
Institutional Yield Strategies for Bitcoin
With the rise of institutional yield strategies, Bitcoin is taking on new roles in the financial landscape. Ryan Chow, co-founder of Solv Protocol, noted that the growing demand for earning yield on Bitcoin without selling it signals a fundamental shift. "Bitcoin as the largest asset class allows staking for returns," he emphasized.
Additionally, many public companies have increased their Bitcoin holdings. For example, a report from Bitwise indicated that the total Bitcoin held by publicly listed companies surged by 16.1% in Q1, highlighting the long-term stability of this asset.
Bitcoin is transforming from a speculative asset into a key component of global financial strategy. With the growing institutional interest and new yield strategies, its role in the financial world could expand significantly.
