Bitwise’s $1.3 Million Bitcoin Target by 2035 May Be Overly Optimistic

Forecast Trend Report by Period

Bitwise has projected that Bitcoin could reach $1.3 million over the next decade, but an analysis said the forecast may be too optimistic.

CoinDesk, a cryptocurrency-focused media outlet, reported on Aug. 13 that the case for Bitcoin reaching $1 million ultimately rests on assumptions that it will capture part of gold’s market capitalization or attract trillions of dollars from institutional investors such as global pension funds. Bitwise has said Bitcoin could rise to $1.3 million by 2035 if it captures 25% of the store-of-value market.

The outlet argued that the forecast does not fully account for the opportunity cost of investing in Bitcoin instead of other assets. It added that inflows into Bitcoin could be limited when relatively safe assets offering high yields, such as long-term US Treasuries, are available.

Bitwise says institutional investors worldwide manage $100 trillion to $200 trillion in assets, and that even a 1% allocation to Bitcoin could support its long-term price outlook.