Another day, another bold new Bitcoin price prediction: $1.3M by 2035.
The world’s largest crypto has evolved from a niche digital asset to a major institutional holding. Crypto asset manager Bitwise sees that evolution continuing at a 28.3% compound annual growth rate (CAGR) over the next decade – far outperforming equities (6.2%), bonds (4.0%), and gold (3.8%).
Bear in mind, Bitwise’s bullish $BTC prediction doesn’t take into account the impact that innovative projects could have on the Bitcoin blockchain – further driving up its price.
Bitwise notes that while the broader economic picture is positive, there are some looming downsides.
First, the US’ national debt is climbing rapidly. When that happens, countries prefer to lower interest rates and devalue their own currency, minimizing the impact of the debt held in that currency.
And as the Bitwise report puts it, it ‘pays to bet on that happening’ in terms of the US’ national debt.
More broadly, US dollar dominance is weakening slightly globally.
That isn’t a doomsday scenario for the US economy, but it does indicate a potential opportunity. As the dollar weakens and loses global dominance, it creates an opening for alternative reserve currencies.
That’s where Bitcoin could come in. In fact, it already has – with Michael Saylor popularizing the Bitcoin Treasury strategy.
Bitwise’s actual price prediction is incredibly bullish and rests on a number of simple facts:
Amid skyrocketing US federal debt ($36T) and nearly $1T in annual interest costs, investors are increasingly drawn to hard, limited-supply assets.
That explains why Bitcoin’s performance since 2020 has been little short of mind-blowing:
Bitwise believes that performance will continue. With a 28.3% CAGR, Bitcoin would reach $1.3M by 2035; that’s Bitwise’s base projection.
Importantly, Bitwise isn’t just pulling numbers out of a hat with these predictions. The numbers are based on underlying assumptions. Some of them may be incorrect, but there’s a clear logic behind them.
Bitcoin could under-perform, of course. In Bitwise’s bearish scenario, the CAGR falls to almost nothing and Bitcoin declines to $88K. But then again, Bitcoin could benefit from factors Bitwise hasn’t considered – like the advent of a fast, powerful Bitcoin Layer-2.
At the same time, final settlement remains on the Bitcoin blockchain, leveraging Bitcoin’s reliability and security.
That would give $HYPER a return of 2,395% – even better than Bitcoin’s 1,400% since 2020.
Bitwise warns that volatility is unlikely to vanish. Models are inherently uncertain, and investors should expect possible drawdowns despite positive trends.
As always, do your own research before making any investment. This isn’t financial advice.
