Bitcoin News Today: Institutional Demand Reshapes Bitcoin’s Long-Term Outlook

Bitcoin is drawing increasing attention from institutional investors and financial analysts as a potential long-term store of value and inflation hedge. Bitwise, a prominent investment firm, recently released a report projecting that Bitcoin could reach $1.3 million by 2035, fueled by a compound annual growth rate (CAGR) of 28.3%. This projected growth far outpaces traditional asset classes such as equities, bonds, and gold, which are expected to deliver CAGRs of 6.2%, 4.0%, and 3.8%, respectively. Bitwise attributed the forecast to Bitcoin’s inelastic supply—capped at 21 million coins—combined with a surge in institutional demand [1].

The report emphasized that Bitcoin’s supply dynamics are fundamentally different from traditional fiat currencies and global debt, which are subject to inflation and monetary expansion. “The inelastic supply of bitcoin, combined with continued demand growth, is the single most important driver of our long-term assumptions,” Bitwise stated. The firm also noted that the traditional four-year cycle, historically tied to halving events, is becoming less relevant as institutional flows reshape the market structure. “The four-year cycle is dead. Bitcoin is no longer a retail-driven market,” the report highlighted, underscoring the influence of exchange-traded funds (ETFs) and corporate treasuries [1].

Meanwhile, other projections from industry leaders show a spectrum of expectations for Bitcoin’s long-term trajectory. Michael Saylor, CEO of MicroStrategy, has proposed a more aggressive forecast of $21 million by 2046. Saylor’s rationale is grounded in Bitcoin’s historical growth, particularly from 2013 when it stabilized around $100 to today’s price of approximately $111,450, yielding a CAGR of about 40%. He also highlighted the symbolic significance of the 21 million coin cap, which could be fully mined by 2140, and its potential to drive scarcity and value. Saylor compared his method to historical financial projections, such as Roger Ibbotson’s 1974 prediction for the Dow Jones Industrial Average [2].

VanEck, another major player in the crypto space, has maintained a more conservative yet bullish outlook, forecasting a year-end price target of $180,000. The firm attributed this forecast to surging CME basis funding rates—peaking at 9%—and robust institutional demand. VanEck’s research showed that in July alone, exchange-traded products and Digital Asset Treasuries added a combined 126,000 BTC to their holdings. The firm also noted strong positioning in the options market, with a call/put ratio of 3.21x, indicating significant bullish sentiment [3].

Despite these optimistic projections, some analysts caution against overconfidence. David Bailey, a Bitcoin adviser to former U.S. President Donald Trump, argued that a Bitcoin bear market is unlikely for several years due to unprecedented institutional adoption. However, others like CK Zheng of ZX Squared Capital and Pav Hundal of Swyftx caution that macroeconomic risks—such as Federal Reserve policy shifts or global liquidity reversals—could still trigger market corrections. Ryan McMillin of Merkle Tree Capital suggested that while Bitcoin may skip deep bear markets, it is unlikely to avoid all volatility, with a possible cyclical top forming around Q2 2026 [4].

Recent market data indicates a temporary cooldown in Bitcoin’s momentum, with apparent demand slowing to 59,000 BTC from a July high of 174,000 BTC. Spot Bitcoin ETFs have also seen reduced inflows, with 30-day net purchases at their lowest levels in four months. On-chain indicators suggest fading bullish momentum, with the CryptoQuant Bull Score Index transitioning from an "Extra Bullish" to a "Bullish Cooldown" phase. Analysts noted that new whale investors have been locking in profits, with over $74 billion in gains realized since July 4. Despite this, price support is expected near $110,000, a key on-chain level that could stabilize further declines [5].

Source:

[1] Bitcoin To Hit $1.3 Million By 2035, Bitwise Forecasts (https://www.benzinga.com/crypto/cryptocurrency/25/08/47317346/bitcoin-to-hit-1-3-million-by-2035-bitwise-forecasts)

[2] Michael Saylor Isn't Crazy. Here's Why Bitcoin Can Hit $21 ... (https://247wallst.com/investing/2025/08/25/michael-saylor-isnt-crazy-heres-why-bitcoin-can-hit-21-million/)

[3] VanEck maintains $180K Bitcoin forecast as CME basis rates ... (https://finance.yahoo.com/news/vaneck-maintains-180k-bitcoin-forecast-135239843.html)

[4] Trump BTC Adviser: No Bitcoin Bear Market Coming for ... (https://bitbo.io/news/trump-adviser-bitcoin-bear/)

[5] From Bullish to Cooldown: Bitcoin Remains in Profit-Taking ... (https://cryptopotato.com/from-bullish-to-cooldown-bitcoin-remains-in-profit-taking-phase-as-demand-fades-cryptoquant/)