Bitwise Analyst: Bitcoin Could Rise to $1.3 Million by 2035

ChainCatcher news, according to a report by Coindesk, a Bitwise analyst report predicts that Bitcoin could become the best-performing institutional asset over the next decade, with its price climbing to $1.3 million by 2035. Bitwise's new price prediction implies a compound annual growth rate of 28.3%, with returns exceeding most traditional assets, but the company warns that even if volatility trends are lower than in past cycles, volatility will still be a defining characteristic of the market.

Analysts led by Matt Hougan wrote that three forces will drive adoption and price increases. The first catalyst is the continued rise of Bitcoin as an institutional-grade asset. The second catalyst is the growing demand for exposure to hard assets in an inflationary environment, and the third catalyst is the fixed nature of its new supply.

Bitwise also stated that the "historic four-year cycle" theory of Bitcoin is no longer relevant. Nevertheless, the agency still warns investors to expect significant pullbacks. The biggest risks include: regulatory changes, legislative changes in major markets, and challenges posed by relatively new assets with limited historical data. Additionally, threats from quantum computing and other technologies have raised concerns, but Bitwise considers them to be secondary issues.