{"id":9048,"date":"2025-08-27T17:49:05","date_gmt":"2025-08-27T17:49:05","guid":{"rendered":"https:\/\/bitunikey.com\/news\/bitcoin-price-could-top-1m-thanks-to-institutions-analysts-say\/"},"modified":"2025-08-27T17:49:20","modified_gmt":"2025-08-27T17:49:20","slug":"bitcoin-price-could-top-1m-thanks-to-institutions-analysts-say","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/bitcoin-price-could-top-1m-thanks-to-institutions-analysts-say\/","title":{"rendered":"Bitcoin price could top $1m thanks to institutions, analysts say"},"content":{"rendered":"<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">Bitcoin may outperform every major asset over the next decade, according to a new Bitwise report projecting a 28% annual growth rate. The firm cites rising institutional demand, scarce supply, and growing concerns over fiat currency debasement as key drivers for the rally.<\/p>\n<div id=\"cn-block-summary-block_de53df144189b080839821d2a0e60233\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Bitwise projects Bitcoin could grow 28.3% annually over the next decade, potentially reaching $1.3 million per BTC by 2035. <\/li>\n<li>Growth drivers include $1-5 trillion in potential institutional demand, 94.8% of the 21 million BTC already in circulation, and rising U.S. debt, up $13 trillion in five years.<\/li>\n<li>Combined with a low 0.21 correlation to equities, these factors make Bitcoin a strong long-term store-of-value.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>Bitcoin (BTC) could be on a track of another big leap, according to a new report by Bitwise Asset Management, which says that over the next decade, BTC may outperform every major asset in the world, with an estimated compound annual growth rate of 28.3%.<\/p>\n<p>In a 24-page report, Bitwise says its thesis is driven by \u201cthree primary factors,\u201d outlining what Bitwise sees as the key ingredients for a long-term bitcoin rally: institutional demand, limited supply, and rising concern about fiat money debasement.<\/p>\n<p>The first factor, institutional demand, stems from the unique nature of Bitcoin\u2019s adoption. Unlike other emerging assets such as private equity or credit, which first attracted institutional investors, Bitcoin\u2019s rise was led by retail investors, the report reads. Nearly 95% of all Bitcoin that will ever exist is already owned \u201cprimarily by retail investors,\u201d leaving institutions with almost no exposure, the firm says.<\/p>\n<p>Now that institutions are starting to allocate to the largest cryptocurrency by market cap, the market could see a tidal wave of demand.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe World Bank believes that institutional investors control roughly $100 trillion in total assets. In the coming decade, we believe these investors will allocate between 1% to 5% of their portfolios to bitcoin, meaning they will need to buy $1 trillion to $5 trillion of bitcoin.\u201d<\/p>\n<p>Bitwise<\/p>\n<\/blockquote>\n<p>By comparison, Bitcoin ETPs currently hold $170 billion, a fraction of the $1 trillion to $5 trillion that Bitwise expects institutions could buy in the coming decade.<\/p>\n<h2 class=\"wp-block-heading\">Scarce supply<\/h2>\n<p>Adding fuel to the fire is Bitcoin\u2019s strict scarcity. It\u2019s well known in the crypto circles that the total supply is capped at 21 million BTC, and 94.8% of that supply is already in circulation. New BTC is produced at a slowing rate, with annual issuance expected to drop from 0.8% today to just 0.2% by 2032. Unlike gold or oil, Bitcoin\u2019s supply can\u2019t be increased to meet rising demand, making it highly inelastic.<\/p>\n<p>As Bitwise notes, the collision of large institutional demand with limited, inelastic supply provides a \u201csimple economics-driven rationale for our thesis.\u201d<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>Finally, Bitwise points to rising concerns about fiat currency debasement. U.S. federal debt has ballooned by $13 trillion in the past five years to $36.2 trillion, while annual interest payments have grown to $952 billion, making them the fourth-largest item in the federal budget. As interest rates rise above expected GDP growth, the pressure on traditional currencies is intensifying.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe combination of these three factors\u2014institutional demand, limited supply, and rising concerns about fiat debasement\u2014allows bitcoin investors to benefit as bitcoin earns an increasing share of the store-of-value market, and as the size of that market grows.\u201d<\/p>\n<p>Bitwise<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\">Valuation model<\/h2>\n<p>To estimate Bitcoin\u2019s future price, Bitwise uses a Total Addressable Market approach, which looks at the potential size of markets Bitcoin can serve and its likely penetration. This includes non-sovereign stores of value like gold, corporate and national treasuries, offshore wealth, and global remittances.<\/p>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">Bitwise\u2019s Bitcoin valuation framework | Source: <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/s3.us-east-1.amazonaws.com\/static.bitwiseinvestments.com\/Research\/Bitwise-Bitcoin-Long-Term-Capital-Market-Assumptions-2025.pdf\" target=\"_blank\" rel=\"nofollow\">Bitwise<\/a><\/figcaption><\/figure>\n<p>Based on conservative assumptions, Bitwise forecasts a 2035 bitcoin price of $1,306,740, reflecting a 28.3% CAGR from current levels. Bear and bull cases range from $88,005 to nearly $3 million per BTC. The firm notes that these projections are not a guarantee, but a framework for understanding the market opportunity.<\/p>\n<p>Bitwise also makes the case for Bitcoin\u2019s value in simple terms: it provides a service, the ability to store wealth digitally without relying on a bank or government. As the firm explains, the more people who want this service, the \u201cmore valuable bitcoin becomes.\u201d At the same time, the fewer people who want this service, the less valuable Bitcoin becomes. If no one wants this service, the value of bitcoin is zero, the report states.<\/p>\n<h2 class=\"wp-block-heading\">Four-year cycle is dead now<\/h2>\n<p>Bitcoin\u2019s low correlation with other assets adds another layer of appeal for investors. Over the past decade, its average correlation to U.S. equities has been just 0.21, and it has rarely exceeded 0.50 in short-term measures, contrary to common media portrayals. Even when equities drop sharply, bitcoin has historically rebounded faster, highlighting its potential as a diversifying asset.<\/p>\n<p>The blend of scarcity, institutional interest, hedging potential, and low correlation makes Bitcoin an attractive long-term portfolio asset. However, Bitwise analysts caution that the traditional four-year cycle may no longer apply, as the influence of past market drivers has waned.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin may outperform every major asset over the next decade, according to a new Bitwise report projecting a 28% annual growth rate. The firm cites rising institutional demand, scarce supply,&hellip;<\/p>\n","protected":false},"author":1,"featured_media":8268,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9048","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/9048","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=9048"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/9048\/revisions"}],"predecessor-version":[{"id":9049,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/9048\/revisions\/9049"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/8268"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=9048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=9048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=9048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}