Bitcoin Set to Outshine Major Assets: Bitwise report
Bitcoin is poised to surpass all major assets in the next ten years, predicts a new Bitwise report forecasting a 28.3% annual growth.
Bitwise believes Bitcoin could hit an notable $1.3 million per BTC by 2035. This prediction hinges on three core drivers: emerging institutional interest, finite supply, and increasing concerns over fiat currency devaluation.
- Institutional investors could invest between $1 trillion and $5 trillion in Bitcoin.
- Nearly 95% of Bitcoin’s limited supply is already circulating.
- U.S. debt has surged by $13 trillion in five years, fueling worries about currency debasement.
Institutional adoption is gaining momentum. With control over roughly $100 trillion, these players may allocate 1%-5% of their holdings to Bitcoin, substantially boosting demand.Currently, bitcoin Exchange Traded Products (ETPs) manage just $170 billion.
The restricted Bitcoin supply further supports this bullish outlook. By 2032, new Bitcoin production will slow to just 0.2%, unlike commodities that can increase output to meet demand. This scarcity ensures Bitcoin remains highly inelastic.
Economic pressures add to Bitcoin’s allure. Soaring U.S. federal debt and rising interest rates undermine confidence in traditional currencies. As Bitwise highlights, combined with low correlation to stocks, Bitcoin offers a resilient store-of-value option.
Utilizing a Total Addressable Market approach, Bitwise anticipates bitcoin prices ranging from $88,005 to nearly $3 million by 2035. While speculative, this valuation underscores a potent market opportunity.
ultimately, Bitcoin’s value stems from providing a digital wealth storage solution autonomous of banks or governments. As demand for this service fluctuates, so does Bitcoin’s value.
Investors looking to enhance portfolio diversity might find Bitcoin appealing due to its unique characteristics. Yet, Bitwise cautions that past market cycles may no longer apply, urging caution.
