Bitcoin News Today: Institutional Hunger Could Push Bitcoin to $1.3M by 2035

Bitwise Asset Management has released a long-term capital market assumption report projecting that Bitcoin could reach a price of $1.3 million by 2035, driven by institutional demand, supply inelasticity, and macroeconomic factors. The firm estimates an annualized return of 28.3% for Bitcoin over the next decade, significantly outpacing traditional assets such as equities, bonds, and gold [1]. The projection is part of a range of scenarios, with a bullish case reaching $2.97 million at a 39.4% CAGR and a bearish case settling at $88,005 at a 2% CAGR [1].

Institutional adoption has become the primary force behind Bitcoin’s price dynamics. According to Cointelegraph, over 75% of trading volume on platforms like Coinbase is now driven by institutional investors, which has led to a significant imbalance between supply and demand. Daily mining production currently stands at around 450 BTC, while institutional demand can absorb over 2,500 BTC within 48 hours [1]. This imbalance is further amplified by corporate Bitcoin accumulation, with 35 publicly traded companies now holding at least 1,000 BTC each, a 35% increase in Q2 2025 [1]. MicroStrategy remains the most aggressive corporate buyer, with over 632,457 BTC in holdings and over $25 billion in unrealized gains [1].

Bitwise also emphasized the scarcity of Bitcoin as a key factor in its long-term valuation. With only 5.2% of the total supply remaining to be mined and annual issuance expected to fall to 0.2% by 2032, Bitcoin’s supply constraints are expected to intensify as institutional demand grows. The firm noted that approximately 70% of existing Bitcoin has not moved for over a year, signaling strong holding behavior among current investors [1]. This scarcity is contrasted with the increasing devaluation of fiat currencies, particularly the U.S. dollar, which has seen over $13 trillion in debt accumulation over the past five years. Annual interest payments on U.S. federal debt have now reached $952 billion, creating pressure on traditional currencies and driving demand for alternative stores of value [1].

Bitcoin’s growing institutional profile is also evident in the rise of spot ETFs, which have become a major source of Bitcoin trading volume. As reported by Cointelegraph, U.S.-based Bitcoin ETFs now generate between $5 billion and $10 billion in daily volume, sometimes surpassing major exchanges like Binance. The BlackRock iShares Bitcoin Trust (IBIT) has emerged as the largest holder of Bitcoin ETF inflows, with over $223 million in net inflows in a four-day period [6]. ETFs have simplified access to Bitcoin for traditional investors and provided a mechanism to integrate the asset into mainstream portfolios alongside stocks and bonds. However, while Bitcoin ETFs have seen strong inflows, Ether ETFs have outpaced them in recent weeks, capturing 10 times more inflows in five days [6].

Despite the optimism, Bitwise acknowledged that risks remain. Regulatory shifts, macroeconomic shocks, and potential competition from other technologies could disrupt the current trajectory. The firm also noted that volatility, while declining, still poses a risk, with historical 30–60% drawdowns expected to occur. Nevertheless, the firm argued that Bitcoin is moving toward becoming a core asset in global portfolios, competing with gold and U.S. Treasuries as a store of value [3]. The convergence of institutional adoption, macroeconomic tailwinds, and supply constraints, according to Bitwise, creates a "perfect storm" for long-term price appreciation.

JPMorgan echoed a similar sentiment, noting that Bitcoin is currently undervalued relative to gold when adjusted for volatility. The bank’s models suggest a fair price of around $126,000 for Bitcoin by the end of 2025, up from its current level. This assessment was based on Bitcoin’s declining volatility—now at a six-month low of 30%—which has brought its risk profile closer to that of gold. JPMorgan attributed this shift to increasing corporate adoption and passive inflows through equity index inclusion, factors that historically reduced volatility in other asset classes [7]. The bank’s findings further reinforce the notion that Bitcoin is gaining traction as a legitimate and diversifying addition to institutional portfolios.

Source: [1] Bitwise Sees BTC Hitting $1.3M by 2035 (https://cointelegraph.com/news/dollar1-3m-bitcoin-by-2035-bitwise-thinks-so) [2] Institutions Want Bitcoin — Bitwise Sees $1.3M BTC by 2035 (https://bravenewcoin.com/insights/institutions-want-bitcoin-bitwise-sees-1-3m-btc-by-2035) [3] Bitwise projects Bitcoin price could reach $1.3M by 2035 (https://crypto.news/bitwise-predicts-bitcoin-price-reach-1-3m-per-btc-2025/) [4] Investment advisers 'dominating' with $18.3B in Bitcoin, ... (https://cointelegraph.com/news/investment-advisers-boost-bitcoin-ether-etf-holdings) [5] The Benefits of Crypto Investing via ETF (https://www.etftrends.com/coinshares-channel/benefits-crypto-investing-via-etf/) [6] US ETFs now a major source of Bitcoin spot trading volume (https://cointelegraph.com/news/bitcoin-etfs-take-share-spot-trading-volume) [7] Bitcoin Undervalued Versus Gold as Volatility Collapses, ... (https://www.coindesk.com/markets/2025/08/28/bitcoin-undervalued-versus-gold-as-volatility-collapses-jpmorgan-says) [8] JPMorgan Says Bitcoin Undervalued Versus Gold as ... (https://thedefiant.io/news/markets/jpmorgan-says-bitcoin-undervalued-versus-gold-volatility-hits-record-low-01a7c4da) [9] Gold, Bitcoin: Mortgage Fraud Accusations Shake Risk ... (https://www.forex.com/en-us/news-and-analysis/gold-bitcoin-mortgage-fraud-accusations-shake-risk-appetite-2025-08-26/)