Bitcoin's Market Cap Could Reach $1 Million by 2029, Driven by Institutional Adoption and Government Involvement

Generated by AI AgentCoin World
Thursday, May 1, 2025 10:42 am ET1min read
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Bitcoin’s market capitalization could reach $1 million by 2029, driven by institutional adoption and potential government involvement, according to André Dragosch, the head of European research at Bitwise. This prediction is based on the idea that Bitcoin could surpass gold’s market capitalization, which is currently valued at over $21.7 trillion, making it the world’s largest asset. Bitcoin’s market capitalization is currently at $1.9 trillion, ranking it as the seventh-largest asset globally.

Dragosch’s prediction is based on the assumption that Bitcoin’s expanding institutional adoption will provide the necessary structural inflows to push its price beyond $1 million by 2029. He also noted that for the 2025 market cycle, Bitcoin may surpass $200,000 in the base case and $500,000 with more governmental adoption. The US government’s potential direct Bitcoin acquisitions through budget-neutral strategies could significantly impact this prediction.

The US is exploring various creative ways to fund its Bitcoin investments, including using tariff revenue and reevaluating the US Treasury’s gold certificates. This could create a paper surplus to fund the BTC reserve without selling gold, according to Bo Hines of the Presidential Council of Advisers for Digital Assets. This potential government involvement could drive Bitcoin’s price closer to $500,000.

Structural inflows from US-based spot Bitcoin exchange-traded funds (ETFs) have exceeded expectations during their first year of trading. BlackRock’s iShares Bitcoin Trust ETF became the fastest-growing ETF in history, indicating that the second and third years could see growing inflows. This prolonged cycle could be further extended when US wirehouses start gaining exposure to Bitcoin and ETFs. These wirehouses, which include major banks like Merrill Lynch or

Morgan Stanley
, control over $10 trillion worth of customer assets and could bring a significant amount of capital to the market.