Bitcoin News Today: Bitcoin’s $1.3M Outlook Hinges on Market Confidence and Institutional Risk

Bitwise, a prominent crypto asset manager, has forecasted that Bitcoin’s price could surge to $1.3 million by 2035, driven by factors such as institutional adoption, inflation-hedge demand, and the fixed supply of the cryptocurrency. This projection is outlined in a report published in August 2025, which highlights the potential for Bitcoin to outperform traditional institutional assets over the next decade. The report cites a compound annual growth rate (CAGR) of 28.3%, a figure that would significantly exceed the returns of most conventional investments. However, the report also cautions that despite growing maturity in the market, volatility will remain a persistent feature, with the potential for steep drawdowns [1].

The prediction aligns with the current market dynamics, where Bitcoin has already reached all-time highs, trading above $100,000 as of the report’s publication. This price surge is attributed to improved regulatory clarity and a growing influx of institutional investors into the cryptocurrency sector. Bitwise’s analysts identify three primary forces driving this upward trend: the continued emergence of Bitcoin as an institutional-grade asset, the rising demand for hard-asset exposure in an inflationary environment, and the limited supply of new Bitcoin units. The firm also notes that the historic four-year price cycle for Bitcoin is no longer a reliable model, though it warns that investors should still be prepared for sharp declines [1].

Corporate and institutional adoption of Bitcoin is another factor influencing its trajectory. Companies across various sectors are increasingly viewing Bitcoin as a reserve asset, mirroring the earlier adoption patterns of gold. This trend has introduced new financial risks, particularly in the form of leverage and balance sheet exposure. As corporations finance their Bitcoin holdings through debt or convertible bonds, a sharp decline in the asset’s price could trigger a cascading effect, weakening corporate balance sheets and potentially destabilizing broader financial markets. Unlike traditional assets, Bitcoin has no intrinsic value or cash flows, making it entirely dependent on market confidence [2].

In parallel, the regulatory environment is playing a critical role in shaping the future of Bitcoin. In the United States, the passage of the GENIUS Act in July 2025 marked a significant step toward formalizing stablecoin regulations. The law mandates full reserve backing for payment stablecoins, monthly audits, and compliance with anti-money laundering (AML) standards. While this provides a clearer legal framework, experts argue that the U.S. must act swiftly to maintain its competitive edge in the global crypto race. With the EU’s Markets in Crypto-Assets (MiCA) regulation already in place, some analysts warn that delays in U.S. policymaking could lead to a regulatory lag that benefits jurisdictions like the EU or APAC [3].

Bitwise’s report also emphasizes the challenges associated with forecasting Bitcoin’s future price, particularly given the limited historical data available. The firm acknowledges the speculative nature of its projections and aims to err on the side of conservatism. Despite this caution, its predictions reflect a broader consensus among market participants that Bitcoin’s unique properties—its decentralized nature, fixed supply, and growing institutional acceptance—position it for substantial long-term growth. However, this optimism is tempered by the recognition that technological threats, regulatory shifts, and macroeconomic factors could all influence the asset’s performance [1].

The increasing institutional interest in Bitcoin is further underscored by the actions of major firms such as MicroStrategy, which has rebranded and continued to accumulate the cryptocurrency as part of its treasury strategy. This move has sparked a broader trend, with other corporations and funds following suit. Nevertheless, as Bitcoin continues to be integrated into corporate balance sheets, the potential for systemic risks grows. The lack of intrinsic value and the reliance on speculative demand mean that a market downturn could have far-reaching implications, particularly for firms that have taken on leverage to fund their Bitcoin holdings [2].

Source:

[1] Bitcoin Price to Hit $1.3M by 2035, Says Crypto Asset ... (https://www.coindesk.com/markets/2025/08/22/bitcoin-price-to-hit-usd1-3m-by-2035-says-crypto-asset-manager-bitwise)

[2] Corporate America's Bitcoin Reserve Strategy is a Hyper ... (https://finance.yahoo.com/news/corporate-america-bitcoin-strategy-hyper-113002765.html)

[3] US must pass regulations or risk losing crypto race (https://cointelegraph.com/news/us-pass-regulations-risk-losing-crypto-race)