Bitwise Increases Bitcoin Price Target to $1.6 Million by 2036 Amid Institutional Demand

Bitwise Asset Management has updated its long-term Bitcoin price forecast, raising the target to $1.6 million by 2036 from a previous estimate of $1.3 million by 2035. This adjustment reflects a projected compound annual growth rate of 34.3% for Bitcoin over the next decade, driven by expanding institutional demand and a growing interest in assets that serve as protection against currency debasement.

Despite Bitcoin experiencing a significant decline of 53% from its peak in October 2025 to its low in June 2026, Bitwise's Chief Investment Officer, Matt Hougan, noted that the updated model produced a higher valuation due to the increasing size of markets Bitcoin could potentially capture. The firm maintains its previous assumptions about Bitcoin's market share, indicating that the higher target is a result of larger market opportunities rather than more aggressive adoption estimates.

Market Projections and Institutional Interest

• Bitwise projects the global store of value market will reach approximately $110 trillion over the next decade, up from a previous estimate of $91 trillion.
• The institutional investment market projection has also been increased from $216 trillion to $303 trillion, reflecting expectations of expanding financial assets.
• Bitwise estimates that institutions controlling about $147 trillion could allocate 1% to 5% of their portfolios to Bitcoin, potentially leading to $1.5 trillion to $7.4 trillion in purchases.

Bitwise's report emphasizes that Bitcoin's supply structure, with a maximum of approximately 21 million coins, could become increasingly significant as demand from institutional investors grows. The firm also highlights that Bitcoin's historical volatility has gradually declined, suggesting a maturing market supported by a broader institutional investor base.

Risks and Future Outlook

While Bitwise remains optimistic about Bitcoin's long-term prospects, the report acknowledges potential risks, including regulatory uncertainty, technological disruption, and advances in quantum computing. The firm cautions that significant drawdowns remain possible, but it expects continued institutional demand to support Bitcoin through 2036.

In summary, Bitwise's revised target of $1.6 million reflects a significant increase in long-term expectations for Bitcoin, driven by institutional adoption and a growing market for hard assets.