Bitcoin Predicted to Soar Past Major Assets by 2035
Bitcoin is poised to outshine all othre major assets over the next decade, with a projected 28.3% annual growth rate by Bitwise Asset Management. The firm believes Bitcoin could soar to $1.3 million per BTC by 2035.
This bullish outlook hinges on three main factors: rising institutional demand,Bitcoin’s limited supply,and growing worries about customary fiat currencies losing value.
Institutional backing is gaining momentum as big investors start to regard Bitcoin seriously. While retail investors initially drove Bitcoin’s adoption, institutions are now moving in, promising colossal demand. Bitwise estimates that institutions could pour $1-5 trillion into Bitcoin over the next ten years.
Bitcoin’s unique supply model contributes to its allure. With a hard cap of 21 million coins and most already in circulation, the supply can’t keep pace with mounting demand. annual BTC creation will plummet to 0.2% by 2032, underscoring its scarcity.
Rising debt levels and fears of currency devaluation add to Bitcoin’s appeal. The U.S. debt climbed $13 trillion in five years, putting pressure on the dollar. Bitwise envisions Bitcoin attracting investors seeking safe-haven assets.
The firm values Bitcoin using a Total Addressable Market method, considering potential markets Bitcoin can penetrate. Conservative forecasts show Bitcoin hitting $1.3 million per BTC by 2035 with a 28.3% CAGR. This restrained projection highlights a notable upside potential.
Bitcoin’s low correlation with stocks further strengthens its case as a diversification tool.Its average correlation with U.S. equities clocks in at just 0.21, making it a robust hedge against market volatility. Despite these compelling arguments,Bitwise warns that past market cycles may no longer hold,as older patterns lose their predictive power.
