Bitwise forecasts that Bitcoin may soar to $1.3 million by 2035

According to news from Hash World Chain and a report by Coindesk, Bitwise analysts predict that Bitcoin could become the best-performing institutional asset over the next decade, with its price climbing to $1.3 million by 2035. This new price forecast implies a compound annual growth rate of 28.3%, with returns surpassing most traditional assets. However, the company warns that even if volatility trends are lower than in past cycles, volatility will still be a defining characteristic of the market. Analysts led by Matt Hougan wrote that three forces will drive adoption and price increases. The first catalyst is the continued rise of Bitcoin as an institutional-grade asset. The second catalyst is the increasing demand for hard assets as a hedge in an inflationary environment, and the third catalyst is the fixed supply of new issuance. Bitwise also stated that the theory of Bitcoin's 'historical four-year cycle' is no longer realistic. Nevertheless, the agency still warns investors to expect significant pullbacks. The biggest risks include: regulatory changes, legislative changes in major markets, and challenges posed by relatively newer assets with limited historical data. Additionally, threats from quantum computing and other technologies have raised concerns, but Bitwise considers them to be secondary issues.