PANews reported on August 23rd that, according to Coindesk, Bitwise analysts predicted in a report that Bitcoin could become the best-performing institutional asset over the next 10 years, with its price climbing to $1.3 million by 2035. Bitwise's new price forecast implies a compound annual growth rate of 28.3%, a return that would exceed most traditional assets. However, the firm warned that even if volatility trends lower than in past cycles, it will remain a defining characteristic of the market.

Analysts led by Matt Hougan wrote that three forces will drive adoption and price increases. The first catalyst is Bitcoin's continued rise as an institutional asset. The second is the growing demand for exposure to hard assets in an inflationary environment, and the third is the fixed nature of its new supply.

Bitwise also stated that the theory of Bitcoin's "historical four-year cycle" is no longer relevant. Despite this, the firm warned investors to expect significant drawdowns. The biggest risks include regulatory changes, legislative shifts in major markets, and challenges posed by relatively new assets with limited historical data. Furthermore, quantum computing and other technological threats have garnered attention, but Bitwise considers them secondary concerns.