Bitcoin News Today: Institutions Drive Bitcoin's Perfect Storm for $1.3M Future
- Bitwise forecasts Bitcoin hitting $1.3M by 2035, driven by institutional demand and constrained supply. - Corporate Bitcoin holdings surged 35% Q2 2025, with 70% of Bitcoin unmoved for over a year. - Declining volatility (30% annualized) and ETF adoption boost Bitcoin's store-of-value appeal. - Analysts warn of 65% price correction risks due to Fed liquidity crunch and ETF outflows.
Bitcoin’s bull market is approaching a late phase as key indicators highlight growing institutional demand, constrained supply, and macroeconomic pressures. Bitwise, a leading crypto asset management firm, forecasts a price target of $1.3 million by 2035, projecting a 28.3% compound annual growth rate (CAGR) over the next decade. This would significantly outpace traditional assets such as equities, bonds, and gold [1]. The projection is anchored in the increasing dominance of institutional investors, with corporate Bitcoin holdings surging and companies such as Strategy (formerly MicroStrategy) leading the charge. As of Q2 2025, corporate Bitcoin purchases increased by 35% quarter-over-quarter, reaching 134,456 BTC, with Strategy accounting for a significant portion of this accumulation [1].
Bitcoin’s supply dynamics are a critical factor underpinning these projections. Approximately 94.8% of the total supply is already in circulation, with annual issuance expected to drop to 0.2% by 2032 from 0.8% currently. This inelastic supply, combined with rising institutional demand, has created a significant supply-demand imbalance. Miners produce approximately 450 BTC daily, while institutions have been withdrawing over 2,500 BTC in two-day windows [1]. This trend has intensified over the past year, with corporate treasuries accelerating their Bitcoin purchases, further reducing market liquidity. In total, 70% of Bitcoin remains unmoved for at least one year, reflecting strong hodling behavior among existing holders.
Meanwhile, Bitcoin’s volatility has sharply declined, a shift attributed to its maturation and the influx of institutional capital. JP Morgan analysts noted that Bitcoin’s volatility has fallen to historically low levels, with annualized volatility dropping from nearly 60% at the start of 2025 to 30% currently [2]. This trend aligns with the launch of spot Bitcoin ETFs in the U.S., which have introduced a more stable and regulated environment for both retail and institutional investors. As volatility decreases, the asset is becoming more attractive as a store of value and long-term investment. However, this has also limited short-term trading opportunities for speculative investors accustomed to rapid price swings [4].
Despite the maturing market, some analysts remain cautious. GLJ Research’s Gordon Johnson has warned that Bitcoin could face a potential 65% price correction if Federal Reserve liquidity continues to contract. Current Fed cash reserves have reached critically low levels, with the overnight reverse repurchase agreement (O/N RRP) facility fully drained for the first time since 2021 [3]. This liquidity crunch echoes conditions seen in 2022, a year marked by a similar Bitcoin crash. Santiment analytics also noted recent ETF outflows, which appear increasingly retail-driven, signaling a potential shift in market sentiment as investors reposition portfolios amid tightening monetary conditions.
The convergence of limited supply, macroeconomic uncertainty, and institutional adoption has created what analysts describe as a “perfect storm” for Bitcoin’s long-term price appreciation [1]. With demand outpacing supply and macroeconomic pressures intensifying, the digital asset’s trajectory appears increasingly tied to institutional market forces. However, the market remains subject to broader economic fluctuations and liquidity conditions, which could influence short-term price dynamics.
Source:

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Unlocking Sustainable Yield in Crypto with Multipli’s Institutional-Grade DeFi Platform
- Multipli, a DeFi platform, raised $21.5M to unlock institutional-grade yield on tokenized assets like Bitcoin and gold, targeting a $16T RWA market by 2030. - It bridges TradFi and DeFi via delta-neutral strategies, offering 6–15% APY on wrapped assets without lockups, outperforming industry averages. - Unlike competitors like Zoniqx or Ondo, Multipli emphasizes same-day liquidity, impermanent loss protection, and proven TradFi partnerships for regulatory compliance. - Its focus on real yield, transparen

El Salvador’s Bitcoin Reserve Initiative: A Blueprint for Emerging Market Crypto Investment Opportunities
- El Salvador’s Bitcoin Reserve Initiative (6,246 BTC, $720M) serves as a strategic hedge against inflation and geopolitical risk, evolving from a public mandate to a sovereign reserve under IMF pressure. - The 2025 Investment Banking Law and CNAD regulatory framework institutionalize Bitcoin adoption, attracting foreign capital through PSAD licenses, tax incentives, and geothermal-powered mining infrastructure. - Innovation hubs like Bitcoin City and NexBridge’s USTBL digital asset, paired with cross-bord

JPMorgan's $500M AI Hedge Fund Bet: A New Era for Institutional Crypto Adoption?
- JPMorgan's $500M investment in Numerai—a decentralized AI hedge fund—marks institutional crypto adoption's turning point. - Numerai's crowdsourced machine learning model combines global algorithms via NMR token incentives, achieving 25.45% 2024 returns. - The fund's 1% fee structure and market-neutral strategy outperform traditional hedge funds while avoiding country/sector risks. - NMR's deflationary design and JPMorgan's backing drove 38% token gains, signaling institutional confidence in crypto-native

Bitcoin News Today: IREN's AI Push and Green Power Fuel Investor Optimism
- IREN's stock surged over 12% after reporting record Q4 results and expanding into AI cloud computing. - The company shifted to a dual-revenue model, replacing ASICs with GPUs and partnering with Nvidia as a "Preferred Partner." - It plans to invest $200M to scale GPU capacity to 10,900 units by 2025, leveraging renewable energy for 97% of operations. - Strong financials, energy efficiency (15 J/TH), and AI growth projections position IREN as a leader in crypto and AI sectors. - Market confidence is refle

Trending news
MoreCrypto prices
More








