Bitwise estimates that bitcoin will reach $1.3 million by 2035 due to institutional investment, inflation hedging, and scarce supply in the crypto realm.

Crypto asset management firm Bitwise has made an optimistic projection and forecasted that by 2035, the price of Bitcoin may surge to 1.3 million dollars. The firm argues that the coming decade will be a time of outlandish growth in the world's largest cryptocurrency, which will be driven by institutional interest, inflationary pressures and the limited supply of bitcoin.

At present being traded at more than 100,000 dollars, Bitcoin recording high prices has, to some extent, enhanced the level of regulatory clarity and institutional involvement. Bitwise envisions a compound average growth of 28.3%, making the bitcoin superior as compared to the conventional assets. Yet it warns that volatility will continue to be a distinct character of the crypto market but of a lesser degree than during the prior cycles.

Bitwise analysts dwelt upon three key factors: the fact that bitcoin is gaining recognition as an institutional-quality asset, the increasing demand to hold exposure to hard assets, and its limited absolute supply. The firm also trivialized the four-year development cyclical nature of Bitcoin; the debate had been replaced by the nature of adoption.

Although Bitwise is optimistic in terms of the long-term development, it cautions investors against the threats of regulation, legislation on the markets, and the outcomes of technology, including quantum computing. The company stressed that the projections on cryptocurrency are highly uncertain due to the lack of historical data and the conservative nature of its estimations.

With crypto becoming a more permanent part of the global financial landscape, the forecast by Bitwise points to the opportunities and challenges that should be noted in the next decade.