CoinVoice has recently learned that, according to a report by Coindesk, Bitwise analysts predict that Bitcoin could become the best-performing institutional asset in the next decade, with its price reaching $1.3 million by 2035. Bitwise's new price forecast implies a compound annual growth rate of 28.3%, with returns exceeding most traditional assets, but 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 have stated 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 'historical four-year cycle' theory of Bitcoin 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 new assets with limited historical data. Additionally, threats from quantum computing and other technologies have raised concerns, but Bitwise considers them a secondary issue. [Original link]
