TL;DR
- Bitwise Analysts Say Bitcoin Could Hit $1 Million if it captures a larger share of the global store of value market.
- The firm estimates that this market is currently worth Nearly $38 trillionlargely dominated by gold.
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If it extends towards $121 trillion over the next decadeBitcoin would only need to be secure approximately a 17% share to justify a seven-figure valuation.
Bitcoin’s long-term valuation is once again a topic of discussion investors search for assets that protect purchasing power. According to the asset manager Bitwise, Limited supply and decentralized structure of Bitcoin position it as a credible organization store of value asset in a market historically dominated by gold.
Despite rude exchanges 40% below its previous all-time highBitcoin continues to attract institutional attention. Bitwise analysts say that Long-term price outlook depends on adoption as a store of valuerather than short-term market volatility.
The Bitcoin Store of Value Thesis Gains Momentum
Bitwise Investment Director Matt Hougan describes an evaluation framework based on the size of the global store of value market. The method begins by estimating the total value of assets used primarily to preserve wealth. Gold is currently worth around $36 trillionwhile Bitcoin is worth around $1.4 trillion.
Under this model, Bitcoin controls just under 4% of the marketleaving considerable room for expansion if investors increasingly view it as a digital alternative to gold.
A central element of the thesis is Bitcoin’s fixed supply of 21 million coins. Because supply cannot increase to meet demand, Price movements can accelerate when new capital enters the market.
Recent developments also support this view. The launch of spot Bitcoin ETFs in the US in 2024 opened the door to pension funds, wealth managers and institutional investors which previously faced operational or regulatory limitations.
Expanding store of value market supports long-term outlook
Hougan’s analysis also assumes that The store of value market itself will see significant growth in the years to come. Uprising sovereign debt levels, inflationary concerns and fears of currency depreciation investors have already turned to scarce assets over the past two decades.
Bitwise estimates that the Global Stores of Value Market Could Approach $121 Trillion in About Ten Years. If this happens, Bitcoin would not need to dominate the sector to justify a million dollar price tag.
Instead, capturing around 17% of the total market might be enough. While this would represent a major shift in global asset allocation, Bitwise argues that improved infrastructure, stronger childcare services and clearer regulations facilitate institutional participation.
