Asset manager Bitwise has released its Bitcoin long-term capital market assumption, predicting its ultimate target in a bull case by 2035.
Notably, the August 25 report echoes the “buy the dip” sentiment as Bitcoin continues to consolidate. The premier crypto asset dropped below $110,000 on Monday for the first time since July, as selling pressure persists.
Bitcoin Targets 28.3% CAGR for the Next 10 Years: Bitwise
Bitwise projected a compounded yearly growth rate of 28.3% for Bitcoin over the next 10 years, insisting it would be the best-performing asset in the timeframe. This would extend its period of dominance over other traditional investment vehicles, as BTC has clearly outperformed most stocks and bonds over the last decade.
Meanwhile, Bitcoin could trend below its current price in a bearish case. The report highlighted a 2% CAGR in this scenario, taking Bitcoin’s price to $88,005.
Bitcoin to Further Penetrate the Financial Market
Notably, the reported growth will see Bitcoin further penetrate the financial market. For context, the report noted that Bitcoin would capture 1% of the projected $216 trillion institutional investment assets market in a base case and 5% in a bullish case.
It would also capture 1% and 2% of the $115.6 trillion emerging market currencies sector by 2035 in a base and bull case, respectively. Additionally, 25% of institutional investors would buy Bitcoin as a store of value in a base case, while 50% would do so in a bull case, capturing a significant part of the projected $91.5 trillion market.
Interestingly, this outlook shares a correlation with that of asset manager Ark Invest. The Cathie Wood-led firm predicted a rally to $1.2 million in a base case and $2.4 million in a bull case for Bitcoin, but in a shorter five-year timeframe.
Catalysts for This Bitcoin Growth
Furthermore, Bitwise highlighted possible facilitators of this bullish run. The Monday report shows that institutional demand for Bitcoin would enable this rally.
Notably, nation-states and corporate institutions have acquired a thirst for Bitcoin, one that has continued to grow lately. The World Bank shared that institutional investors control over $100 trillion and allocating between 1% and 5% of this staggering capital to Bitcoin would make the asset worth $1 trillion or $5 trillion.
Other catalysts for this price surge are the growing concerns of inflation. The report noted that this fiat-debased economic condition would drive the demand for hard money, favoring Bitcoin. Additionally, Bitwise also mentioned Bitcoin’s limited supply as another factor for its bullish outlook.
Report Based on Hot Demand
Remarkably, chief investment officer Matt Hougan revealed that the Bitwise first-ever Bitcoin market forecast report came on popular demand. He noted that large investors asked the asset manager 12 times this year for the report; hence, the release.
According to the CIO, even a half-trillion allocation to Bitcoin from these financial heavyweights would be real money.