According to ChainCatcher news and a report by Coindesk, Bitwise analysts predict that Bitcoin may become the best-performing institutional asset over the next decade, with its price climbing to $1.3 million by 2035. Bitwise's new price prediction implies a compound annual growth rate of 28.3%, with returns exceeding most traditional assets, but the company warns that volatility will remain a defining feature of the market, even if volatility trends are lower than in past cycles.
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 growing demand for exposure to hard assets in an inflationary environment, and the third catalyst is the fixed nature of its new supply.
Bitwise also stated that the theory of Bitcoin's 'historic four-year cycle' is no longer realistic. Nonetheless, 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 new assets with limited historical data. Additionally, concerns about quantum computing and other technological threats have arisen, but Bitwise considers them secondary issues.
