Bitcoin (CRYPTO: BTC) is projected to become the best-performing institutional asset of the next decade, with Bitwise forecasting a price of $1.3 million by 2035, according to a new report.
WHat Happened: Bitwise estimates Bitcoin will deliver a compound annual growth rate (CAGR) of 28.3% over the next ten years, far surpassing equities, bonds, and gold.
The report framed the projection as a direct outcome of its inelastic supply colliding with growing institutional demand.
The report noted that Bitcoin's supply dynamics, capped at 21 million coins, contrast sharply with rising global debt and fiat currency expansion.
Bitwise said, "The inelastic supply of bitcoin, combined with continued demand growth, is the single most important driver of our long-term assumptions."
Also Read: Ethereum ETFs Hit $11 Billion, Combine With Bitcoin For $244 Billion In Assets Under Management
Bitwise further argued that the traditional four-year cycle, historically linked to halving events, is becoming less relevant as institutional flows reshape Bitcoin's market structure.
"The four-year cycle is dead. Bitcoin is no longer a retail-driven market," the report stated, emphasizing the impact of exchange-traded funds and corporate treasuries.
In comparison, the report showed U.S. large-cap equities with an expected CAGR of 6.2%, U.S. bonds at 4.0%, and gold at 3.8%, highlighting Bitcoin's potential dominance in institutional portfolios.
By 2035, Bitwise projects Bitcoin could become a core holding across pension funds, endowments, and sovereign wealth portfolios, citing its role as both an inflation hedge and a store of value.
"Bitcoin is now an institutional asset. It deserves a place in long-term capital market assumptions alongside stocks, bonds, and gold," the report stated.
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