Bitwise's latest forecast from the asset management company indicates that Bitcoin will be the best-performing major asset class over the next 10 years, with an expected annual compound growth rate of 28%, and price volatility is expected to gradually decrease over time.
The above forecast comes from the upcoming (Long-Term Capital Market Outlook for Bitcoin) report, authored by Bitwise's Chief Investment Officer Matt Hougan, primarily for reference by large platforms, professional institutions, and managers. Since the U.S. approved the listing of Bitcoin spot ETFs last year, institutional investors have gradually begun to view Bitcoin as a 'core asset' in their portfolios.
Matt Hougan stated that this year Bitwise has received inquiries from more than ten institutions regarding Bitcoin's long-term investment outlook, a stark contrast to the 'zero inquiries' situation from 2017 to 2024. He believes this represents a structural shift in institutional investor perspectives – Bitcoin is gradually moving from a fringe asset to a mainstream investment option.
According to the forward-looking report, Bitcoin's expected returns, volatility, and correlation all outperform traditional asset performance. Bitwise specifically highlights that Bitcoin's correlation with major assets falls within the traditional definition of 'low correlation' (between -0.5 and 0.5), which is a crucial factor when pursuing portfolio diversification.
Matt Hougan positions this report as the 'capital market outlook for digital assets,' comparable to the long-term allocation blueprints released annually by major Wall Street investment banks for stocks, bonds, real estate, and alternative assets. He emphasizes that as the Bitcoin spot ETF market matures, providing such long-term guidance has become necessary.
According to statistics, since the listing of the U.S. Bitcoin spot ETF last January, the holding scale has approached 7% of the total Bitcoin supply, with asset size exceeding $146 billion.
On the other hand, corporate financial positions are also rapidly expanding, led by Strategy holding 629,000 Bitcoins, with the overall corporate Bitcoin holdings exceeding $80 billion. Many companies are even financing large-scale Bitcoin purchases through stocks and convertible bonds.
"Expected annual compound growth rate of 28%! Bitwise predicts: Bitcoin will outperform traditional assets in the next 10 years" – this article was first published on (Blockcast).
