Key facts
- Bitwise CIO Matt Hougan predicts significant institutional capital inflow into bitcoin over the next decade.
- Hougan forecasts a potential bitcoin price of $1.3 million by 2035, driven by a 1% allocation from global institutional assets.
- Demand is expected to shift from corporate buyers to larger institutions like pension funds and sovereign wealth funds.
- The CLARITY Act's Senate vote has been delayed until September, potentially causing short-term crypto market volatility.
- Coinbase CEO Brian Armstrong believes crypto adoption momentum continues despite legislative delays.
Bitwise Chief Investment Officer Matt Hougan predicts that institutional investors could allocate trillions of dollars to bitcoin over the next decade, viewing it as a mainstream financial asset. He estimates that a 1% allocation from institutions controlling $100 trillion to $200 trillion in assets could support a long-term price target of $1.3 million per coin by 2035. Hougan expects future demand to be driven less by corporate buyers like MicroStrategy and more by large institutions such as pension funds, endowments, insurance companies, and sovereign wealth funds, especially as spot bitcoin ETFs offer easier access. He noted that the "easy paths to accumulation" for companies like MicroStrategy have been exhausted.
Separately, Coinbase CEO Brian Armstrong stated that crypto adoption is progressing despite the delay in the CLARITY Act vote, citing growth in stablecoins and tokenization. Bitwise CIO Matt Hougan had previously predicted short-term crypto market volatility due to the delayed CLARITY Act vote, potentially leading to a fall in passage odds.