Introduction to Bitwise’s Bitcoin Forecast
In a report published on August 27, 2025, crypto asset manager Bitwise made headlines with a bold prediction: Bitcoin (BTC) could soar to $200,000 by the end of 2025 and reach $1.3 million by 2035, potentially overtaking gold’s $18 trillion market cap by 2029. These projections, shared by Bitwise’s Chief Investment Officer Matt Hougan and echoed across platforms like X, signal a transformative decade for Bitcoin. This article delves into the details of Bitwise’s predictions, the factors driving Bitcoin’s potential, and the implications for the Web 3 ecosystem in 2025.
Bitwise’s Predictions: $200,000 in 2025, $1.3 Million by 2035
Bitwise’s forecasts are grounded in a mix of on-chain data, macroeconomic trends, and institutional momentum. Key points from their August 2025 report include:
- 2025 Target: Bitcoin is projected to surpass $200,000 by year-end, a 70% increase from its August 27, 2025, price of $111,794, driven by ETF inflows and corporate adoption.
- 2035 Outlook: A long-term target of $1.3 million per BTC, implying a 28.3% compound annual growth rate (CAGR), with an optimistic scenario reaching $2.9 million (39% CAGR).
- Gold Market Flip: By 2029, Bitcoin could overtake gold’s $18 trillion market cap, trading above $1 million, as per a December 2024 prediction.
Drivers of Bitcoin’s Growth
Several factors underpin Bitwise’s bullish outlook:
- Institutional Adoption: Spot Bitcoin ETFs, like BlackRock’s iShares Bitcoin Trust (IBIT), have amassed $113 billion in assets by August 2025, with $3.85 billion in weekly inflows. Bitwise predicts even higher inflows in 2025, potentially surpassing 2024’s $33.6 billion.
- Corporate Treasuries: Public companies hold 980,000 BTC ($111 billion), or 4.66% of the total supply, with firms like MicroStrategy leading the charge. Bitwise expects 1.5 million BTC in corporate reserves by 2026.
- Government Holdings: Nine nations currently hold Bitcoin reserves, and Bitwise forecasts this doubling by 2025, potentially with the U.S. establishing a strategic BTC reserve.
- Macroeconomic Trends: Rising debt, deficits, and dollar devaluation favor Bitcoin as a digital store of value. As Ray Dalio noted in June 2025, governments prefer currency devaluation to manage debt, boosting demand for assets like Bitcoin and gold.
- Supply Dynamics: Bitcoin’s annual inflation rate of 0.8% (dropping to 0.4% in 2028) and fixed 21 million supply contrast with gold’s 1–2% inflation, creating scarcity-driven value.
Market Context and Sentiment
As of August 28, 2025, Bitcoin trades at $111,794, down 6.38% from its all-time high of $120,799, with a market cap of $2.31 trillion and 24-hour trading volume of $101.86 billion. Technical indicators show bullish momentum, with the Relative Strength Index (RSI) at 39.11, suggesting room for growth without being overbought.
However, volatility remains a concern. Bitcoin tested resistance at $116,577 and topped at $121,100 before pulling back, with support at $112,097. Regulatory shifts and market corrections could pose risks, though Bitwise views these as secondary to long-term fundamentals.
Conclusion
Bitwise’s bold predictions—$200,000 by 2025 and $1.3 million by 2035—reflect Bitcoin’s growing role as a digital store of value amid institutional and macroeconomic tailwinds. As Web 3 evolves, Bitcoin’s integration into ETFs, corporate treasuries, and government reserves could redefine finance. Investors and developers can leverage on-chain tools to stay ahead in this dynamic market.
