Bitcoin News Today: Institutional Bets on Bitcoin’s $1.3M Future, Amid Volatility and Uncertainty

Bitcoin’s long-term price trajectory remains the subject of intense speculation among institutional investors and analysts, with recent developments suggesting a maturing market and increased mainstream adoption. Bitwise, a prominent crypto asset manager, predicts that the world’s largest cryptocurrency could reach $1.3 million by 2035, driven by institutional interest, inflation-hedging appeal, and its fixed supply. The firm’s analysts, led by CIO Matt Hougan, argue that the next decade could see bitcoin outperforming traditional institutional assets, though they caution that steep market drawdowns are still likely [1]. This projection implies a compound annual growth rate of 28.3%, significantly outpacing most conventional investments.

Recent movements in the cryptocurrency market have underscored this growing institutional confidence. Following Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium, which hinted at a potential rate cut in September, Bitcoin surged over 4% in a single day, reaching an intraday high of $117,300. The price rally liquidated $379.88 million in short positions, with Bitcoin itself accounting for $56.4 million of that figure. Analysts like Michael van de Poppe of MN Capital have highlighted that the uptrend appears to have resumed, citing a technical sweep of key support levels as a catalyst for renewed bullish sentiment [2].

The market’s reaction to Powell’s comments also had ripple effects across related assets. Bitcoin-proxy stocks such as Strategy and Coinbase saw gains of over 5% and nearly 7%, respectively, reflecting the broader risk-on sentiment among investors. Additionally, altcoins like Ethereum and Solana also experienced notable price increases. Ethereum, in particular, rose over 12% to $4,750 on the same day, drawing attention to its growing institutional profile. Some traders have shifted their focus from Bitcoin to Ethereum, which remains more volatile and less saturated in the institutional space [4].

Bitcoin’s evolving behavior also suggests a market in transition. Once characterized by extreme volatility—annualized swings of nearly 200%—the cryptocurrency is now exhibiting more stable price movements, comparable to major blue-chip equities like Starbucks or Goldman Sachs. Arca’s CIO Jeff Dorman noted that while Bitcoin is increasingly seen as a long-term hold, Ethereum’s growing adoption makes it a more attractive short-term speculative vehicle. The shift is also reflected in ETF flows, with investors pouring $2.5 billion into Ether funds in August while withdrawing $1.3 billion from Bitcoin equivalents [4].

Despite the optimism, analysts remain cautious about the long-term risks. Bitwise acknowledged that forecasting Bitcoin’s future is inherently uncertain due to the asset’s short historical track record. Regulatory developments, political shifts, and macroeconomic conditions remain key variables that could alter the trajectory of the market. While technological threats like quantum computing are on the radar, they are seen as secondary to the more immediate challenges of market structure and policy [1].

Source:

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

[2] Bitcoin price breakout to $117K liquidates bears, opening door to fresh all-time highs (https://cointelegraph.com/news/bitcoin-price-breakout-to-dollar117k-liquidates-bears-opening-door-to-fresh-all-time-highs)

[3] Bitcoin and Crypto Stocks Surge as Powell's Rate-Cut Hint Revives Risk Appetite (https://www.investopedia.com/bitcoin-and-crypto-stocks-surge-as-powell-rate-cut-hint-revives-risk-appetite-11795898)

[4] Bitcoin-Volatility Collapse Forces Risk-Loving Traders to Hunt for New Playground (https://finance.yahoo.com/news/bitcoin-volatility-collapse-forces-risk-112008080.html)