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Beyond the current volatility, the price of Bitcoin will maintain a bullish trend.
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Institutional investors will allocate up to 5% of their portfolios in BTC, according to Bitwise.
In a scenario where financial markets seek resilient assets, Bitwise, a specialized firm in cryptocurrency investments, projects a promising future for Bitcoin (BTC).
In its August 21 report, the company details the factors that – in its opinion – will boost the growth of the digital currency and anticipates a price of 1.3 million dollars by 2035with an annual growth rate composed of 28.3%.
Bitwise attributes this projection to three main elements. First, Bitcoin consolidates its position as an institutional asset, which will generate constant capital flows.
Second, institutional investors seek more and more «hard» active as protection against inflation.
Finally, the limited offer of Bitcoin, with only 21 million total units, reinforces its value against a growing demand. However, The firm warns that this upward trend will be accompanied by significant volatilityalthough less than the observed historically.
Bitcoin’s institutional adoption will grow in the future
The report emphasizes that institutional investors, who manage approximately 100 billion dollars in assets according to the World Bank, They could assign between 1% and 5% of their portfolios to Bitcoin in the next decade.
This would imply an investment of between 1 and 5 billion dollars. Currently, Bitcoin investment products already handle 170,000 million dollars, but Bitwise considers this only the beginning.
The purchase pressure of these institutions, combined with the shortage of Bitcoin new – about 18,000 million dollars annually at current prices – will boost upward prices.
Unlike other emerging assets, such as private capital or credit, Bitcoin was initially adopted by retail investors. Today, about 95% of existing bitcoin belongs to these investorswhile most institutional ones still have no exhibition.
This dynamic, together with the strict limitation of supply, creates a high demand scenario against reduced availability, according to Bitwise.
There are risks to the price of Bitcoin
Despite optimism, Bitwise recognizes risks that could stop his prognosis. The main ones are the regulatory and legislative changes Derivatives of unpredictable political environments.
In addition, BTC, as a relatively new asset, lacks an extensive history, which introduces uncertainty. Although less worrying, the firm mentions the theoretical risk of quantum computing, which could compromise Bitcoin cryptography, however, the current technical limitations minimize this threat, as cryptootics reported it.
Bitwise admits that The models to predict Bitcoin’s performance are imperfect and evolve with limited data. Therefore, he adopts a conservative approach in his estimates, considering the novelty and volatility of the asset.
In addition, the firm indicates that the halving, an event that reduces Bitcoin’s broadcast every four, has «lost relevance,» although the market will continue to face significant setbacks.
Other projections for Bitcoin
For its part, the Bernstein firm provides that Bitcoin will reach between $ 150,000 and $ 200,000 in 2026, $ 500,000 in 2029 and 1 million dollars in 2033, with bullish cycles interrupted by bearish periods.
Michael Saylor, president of Strategy, projects a price of 21 million dollars in 21 years. These estimates reinforce the perception of sustained growth, although with fluctuations, such as Bitwise.
The firm highlights that Bitcoin maintains low correlations with actions, bonds and other kinds of assets, which makes it an attractive option to diversify wallets. His combination of shortage, initial retail adoption and increasing institutional interest positions it as a unique asset in the financial panorama. The company concludes that, Despite the risks, Bitcoin is on the way to being the best performance institutional asset in the next decade.