Bitwise has released a new forecast regarding Bitcoin's price, expecting it to reach $1.3 million by 2035, driven by rising institutional demand and limited supply.
Bitcoin's Future
According to the Bitwise report, Bitcoin's price may reach $1.3 million by 2035, corresponding to a 28.3% annualized return. The report also considers multiple scenarios, including a bullish case where Bitcoin could reach $2.97 million and a bearish case where the price could drop to $88,005.
Institutional Demand for Bitcoin
There has been a significant increase in institutional investments in Bitcoin in recent years. Over 75% of Bitcoin trading volume on Coinbase comes from institutional investors. The number of publicly traded companies holding significant amounts of Bitcoin has also risen, with 35 companies now owning more than 1,000 BTC each.
Limited Supply and Macroeconomic Factors
With 94.8% of the total Bitcoin supply already in circulation and new production decreasing, Bitcoin's supply cannot meet rising demand. Unlike traditional commodities, Bitcoin's supply cannot be increased regardless of price appreciation. Macroeconomic issues and weakened fiat purchasing power are contributing to a growing interest in Bitcoin as a hedge.
Bitwise's forecasts highlight key factors contributing to Bitcoin's long-term price growth, including institutional demand and limited supply.
