Executive Summary
- Bitwise projects Bitcoin’s price could reach $1.3 million by 2035, driven by surging institutional demand, its scarce supply, and prevailing macroeconomic pressures.
- Institutional demand now dominates the Bitcoin market, with over 75% of Coinbase’s trading volume from institutional clients and accelerated corporate adoption.
- Bitcoin’s fundamental supply scarcity, with 94.8% of its total supply in circulation and strong “hodling” behavior, creates a persistent imbalance against escalating demand.
The Story So Far
- Bitwise’s optimistic forecast for Bitcoin’s price to reach $1.3 million by 2035 is primarily driven by a surge in institutional demand and corporate adoption, its inherently scarce and inelastic supply increasingly limiting availability, and prevailing macroeconomic pressures that enhance its appeal as a store of value amidst concerns over fiat currency debasement.
Why This Matters
- Bitwise’s optimistic projection of Bitcoin reaching $1.3 million by 2035 underscores a pivotal shift in its market dynamics, moving it from a retail-driven asset to a mainstream institutional investment. This forecast suggests that surging corporate and institutional demand, combined with Bitcoin’s inherent supply scarcity and global macroeconomic pressures, could firmly establish it as a significant long-term store of value and treasury asset, reshaping how traditional finance approaches digital assets.
Who Thinks What?
- Bitwise projects Bitcoin’s price could reach $1.3 million by 2035, driven by surging institutional demand, inherent scarcity, and macroeconomic pressures, with a bullish scenario potentially reaching $2.97 million.
- Institutional clients and corporations, including MicroStrategy, are increasingly dominating Bitcoin trading volume and acquiring large amounts of BTC as a treasury asset, signaling growing confidence in its long-term value.
- Long-term Bitcoin holders demonstrate strong conviction, with approximately 70% of the supply remaining unmoved for at least one year, contributing to supply scarcity and supporting the asset’s appreciation.
Crypto asset management firm Bitwise projects Bitcoin’s price could reach $1.3 million by 2035, driven by surging institutional demand, the cryptocurrency’s inherently scarce supply, and prevailing macroeconomic pressures. This optimistic forecast suggests a 28.3% compound annual growth rate for Bitcoin over the next decade, significantly outpacing traditional asset classes.
Bitwise’s Price Projections
The firm’s report outlines a wide range of potential outcomes, with a bullish scenario seeing Bitcoin climb as high as $2.97 million. Conversely, a bearish outlook suggests a potential downside to $88,005 by 2035.
This broad range reflects the anticipated volatility that will likely persist in Bitcoin markets, even as institutional participation continues to grow. Bitwise emphasizes that the current trajectory points strongly towards significant long-term appreciation.
Institutional Demand as a Key Driver
Bitwise highlights that the Bitcoin market is no longer primarily driven by retail investors, with institutional flows now dominating price action. Data from Coinbase indicates that over 75% of its Bitcoin trading volume originates from institutional clients, a level historically associated with substantial price movements.
Corporate adoption of Bitcoin has also accelerated dramatically, with 35 publicly traded companies now holding at least 1,000 BTC each. Total corporate Bitcoin purchases increased by 35% quarter-over-quarter in Q2 2025, rising from 99,857 BTC to 134,456 BTC.
MicroStrategy, a prominent corporate holder, continues to lead this trend, having signaled its fourth consecutive monthly Bitcoin purchase. These large-scale acquisitions underscore the growing confidence among corporations in Bitcoin as a treasury asset.
Supply Scarcity and Macroeconomic Tailwinds
Bitcoin’s fundamental supply scarcity is identified as a critical factor for long-term growth. With 94.8% of the total BTC supply already in circulation and annual issuance declining, new Bitcoin production struggles to meet escalating institutional demand.
The inelastic supply of Bitcoin, which cannot be increased regardless of price, combined with continuous demand growth, is considered the single most important driver of Bitwise’s long-term assumptions. This dynamic creates a persistent supply-demand imbalance.
Further supporting this outlook is strong “hodling” behavior, with approximately 70% of the Bitcoin supply remaining unmoved for at least one year. This indicates a strong conviction among long-term holders, further limiting available supply.
Macroeconomic pressures, particularly rising concerns about fiat currency debasement, are also contributing to Bitcoin’s appeal as a store of value. This convergence of limited supply, accelerating institutional adoption, and global economic uncertainty creates what Bitwise calls a “perfect storm” for Bitcoin price appreciation.
The report notes that Bitcoin miners produce only 450 BTC daily, while institutions frequently withdraw over 2,500 BTC in 48-hour periods, further exacerbating the supply squeeze and driving significant price discovery.
Bitwise’s latest projections paint an optimistic picture for Bitcoin’s future, forecasting a potential price of $1.3 million by 2035. This outlook is firmly rooted in the cryptocurrency’s increasing institutional adoption, its fixed and scarce supply, and a supportive macroeconomic environment, collectively signaling a significant shift in its market dynamics.
