Bitwise's investment director Matt Hougan has predicted that Bitcoin could reach 1.3 million dollars by 2035. This prediction is based on the assumption that institutional investors, who manage between 100,000 and 200,000 billion dollars in assets worldwide, will allocate 1% of these assets to Bitcoin. According to Hougan, this demand would be sufficient to drive the price up to 1.3 million dollars.
Institutional Investment
The other key factor in Hougan's reasoning is the potential role that Bitcoin could play in the broader reserve asset market, currently dominated by gold and real estate. Hougan believes that Bitcoin could occupy a quarter of this market within a decade, assuming it continues to grow at its historical rate of 13% per year.
Market Uncertainty
This prediction is not Bitwise's first on the subject, and the company had previously estimated a potential price range of 90,000 to 3 million dollars. The wide range of possible prices highlights the uncertainty surrounding the rate of institutional adoption. Other analysis firms have also made similarly optimistic predictions, with varying methodologies.
Regulatory Environment
The Federal Reserve has recently reminded investors that it does not consider Bitcoin an asset that it would intervene to save in the event of a crash, a statement that contrasts with the optimistic institutional outlook presented by Bitwise. However, if institutional investors were to allocate 1% of their assets to Bitcoin, this would represent an influx of 1 trillion dollars, nearly half of Bitcoin's current total market capitalization.
