Bitwise predicts that the price of Bitcoin will reach $1.3 million by 2035 with a compound annual growth rate of 28.3%.

[Chain News] On August 23, news reported that a Bitwise analyst's report predicted that Bitcoin could become the best-performing institutional asset in the next 10 years, with its price rising to $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 warned that even if fluctuation trends are lower than in past cycles, volatility will still be a decisive characteristic of the market.

Analysts led by Matt Hougan wrote that three forces will drive adoption and price rise. 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 meaningful in reality. Nevertheless, the institution still warns investors to expect significant pullbacks. The biggest risks include: regulatory changes, legislative changes in major markets, and the challenges posed by relatively new assets with limited historical data. In addition, threats from quantum computing and other technologies have raised concerns, but Bitwise considers them to be secondary issues.