Bitcoin News Today: Institutional Embrace Drives Bitcoin to Core Portfolio Status

Bitcoin is set to deliver a projected 28.3% compound annual growth rate over the next decade, according to forecasts by Bitwise Asset Management’s Chief Investment Officer, Matt Hougan [1]. This figure, derived from the firm’s Long-Term Capital Market Assumptions, positions Bitcoin as a top-performing major asset relative to traditional investments such as equities, bonds, and real estate [1]. The projection is based on a shift in institutional interest, with 12 major platforms requesting long-term Bitcoin assumptions in 2025—up from zero between 2017 and 2024 [1]. These requests signal a broader acceptance of Bitcoin as a “core” portfolio asset rather than a niche or speculative play, especially following the approval of spot Bitcoin ETFs in January 2024 [1].

Bitwise characterizes Bitcoin’s volatility as declining over the next 10 years but still high compared to traditional asset classes [1]. The asset is also expected to maintain low correlations with major assets, ranging between −0.5 and 0.5 [1]. This low correlation is a significant factor in portfolio diversification, a feature that has made Bitcoin increasingly attractive to institutional investors [1]. The firm compares its assumptions to traditional capital market outlooks used by major Wall Street institutions for stocks, bonds, and alternatives [1].

The rise in institutional adoption has been further supported by the approval and subsequent growth of spot Bitcoin ETFs. These ETFs now hold approximately 7% of the total Bitcoin supply, with over $146 billion in assets under management [1]. Additionally, corporate treasuries, including those of companies like Strategy, have accumulated over $80 billion in Bitcoin holdings [1]. These developments reflect broader macroeconomic factors, including U.S. interest rate expectations and global liquidity trends [4].

Bitcoin’s evolving relationship with traditional markets, particularly the S&P 500, has drawn significant attention. Over the past five years, the correlation between Bitcoin and the U.S. equity index has often exceeded 70% on a 30-day basis [2]. While historically, Bitcoin has shown periods of strong negative correlation—such as in 2019—its behavior has become more aligned with equities during times of macroeconomic stress [2]. However, during Bitcoin’s bull runs, it has demonstrated the ability to decouple from traditional markets, driven by factors like its fixed supply and adoption cycles [2].

The recent surge in Bitcoin’s price, reaching record highs above $124,000, has been fueled by a combination of regulatory clarity and increased institutional adoption [3]. Executive actions by the Trump administration, such as allowing Bitcoin in 401(k) plans, have contributed to this momentum [3]. Additionally, the launch of BlackRock’s Bitcoin ETF in January 2024 marked a turning point, providing investors with a regulated avenue to access the asset [3]. As a result, Bitcoin has outperformed major indices, including the S&P 500 and the Nasdaq 100, which have gained around 10% and 13%, respectively, in 2025 [3].

Bitwise’s projection, if realized, would see Bitcoin reach approximately $1.4 million by 2035 [5]. This would translate into a market capitalization of around $28 trillion, surpassing the U.S. Treasury market and exceeding twice the size of the gold market [5]. While the forecast is bold, it reflects a structural shift in how institutional investors perceive Bitcoin. Hougan emphasized that the growing number of long-term capital market assumption requests from large platforms is a clear indication that Bitcoin is being integrated into core portfolio strategies rather than treated as a speculative or peripheral asset [1].

Source:

[1] Bitwise forecasts bitcoin to outperform traditional assets (https://www.theblock.co/post/367610/bitwise-bitcoin-10-years-traditional-assets)

[2] Bitcoin vs US Equities Correlation Chart (https://newhedge.io/bitcoin/us-equities-correlation)

[3] Crypto is booming. Washington is driving the rally (https://www.cnn.com/2025/08/18/business/bitcoin-crypto-rally-us-stocks)

[4] Bitcoin vs Global M2 Supply Growth Chart (https://newhedge.io/bitcoin/bitcoin-vs-global-m2-growth)

[5] Bitcoin will grow at 30% per year for the next decade, says (https://finance.yahoo.com/news/bitcoin-grow-30-per-next-204919457.html)