Institutions are Eyeing Bitcoin Investments - Bitwise Predicts Over a Million Dollars Worth by 2035

In the ever-evolving world of cryptocurrencies, Bitcoin continues to garner significant attention. A recent prediction by Bitwise suggests that the digital currency could be worth a staggering $1.3 million by 2035. This forecast is based on a compound annual growth rate (CAGR) of 28.3%, a rate higher than that of equities, bonds, and gold.

This potential growth is attributed to several factors. Firstly, the annual issuance of Bitcoin is set to drop from 0.8% to 0.2% by 2032, making it significantly scarcer than fiat currency. This scarcity, coupled with the increasing demand, could potentially lead to high prices.

Institutional demand for Bitcoin has been on the rise, with corporate purchases surging 35% in Q2 2025 alone. Companies and institutional investors view Bitcoin as a long-term store of value and a hedge against systemic risks such as inflation and the weakening US dollar. The approval of multiple Bitcoin ETFs in the US starting in early 2024 has attracted billions in institutional capital, further boosting demand.

The imbalance between mining and institutional buying is evident on-chain, with institutions regularly buying multiples of daily production. Notable examples include MicroStrategy, a firm run by Michael Saylor, which has significantly increased its Bitcoin holdings, now owning 632,457 BTC worth $71 billion.

Corporate adoption of Bitcoin is also increasing. Currently, 35 publicly traded firms hold over 1,000 BTC each, up from 24 earlier this year. This trend reflects a growing strategic interest in Bitcoin as a means to protect capital amid growing financial system risks.

However, it's important to note that Bitwise also presents scenarios with higher and lower growth rates. In the bull case, Bitcoin could be worth $2.97 million by 2035, while in the bear case, it could be worth $88,005.

Despite these predictions, the U.S. federal debt has ballooned to $36.2 trillion over the past five years. Annual interest payments on the debt are nearly $1 trillion, making it the fourth-largest line item in the federal budget. This situation, where interest costs are outpacing GDP growth, creates a situation where the debt is growing faster than the economy can support.

In contrast, Bitcoin is seen as an insurance policy against monetary softness and unsound fiat currencies. Its decentralised nature and finite supply make it an attractive alternative for those seeking a store of value that is not reliant on government policies.

As we move towards 2035, the future of Bitcoin remains uncertain. However, with increasing institutional demand, a scarcity of supply, and a growing number of corporations adopting Bitcoin, the prediction of a $1.3 million Bitcoin by 2035 is not entirely implausible.

Over 75% of Coinbase's trading volume comes from institutions, including Wall Street, pensions, and corporate treasuries, indicating a shift in the traditional financial landscape. As more institutions invest in Bitcoin, we can expect to see further price volatility and potentially a significant increase in the value of the digital currency.

In conclusion, while the $1.3 million prediction is ambitious, the factors driving Bitcoin's growth are compelling. Whether Bitcoin will indeed reach these heights remains to be seen, but one thing is certain: the digital currency's impact on the financial world is undeniable.

Institutions are Eyeing Bitcoin Investments - Bitwise Predicts Over a Million Dollars Worth by 2035