Ark Invest’s Cathie Wood has reiterated the potential for Bitcoin to hit a million-dollar valuation, predicting the timeline for the asset to reach this target.
Cathie Wood, the CEO and founder of Ark Investment Management, remains super bullish on Bitcoin, the largest cryptocurrency by market cap. In a recent interview with CNBC, Wood reiterated her firm’s expectations that Bitcoin will rally to $1.5 million.
Timeline and Possibility Theory
She shared that Bitcoin should surge to $1.5 million by 2030, roughly five years from now. Interestingly, Wood, who also acts as Ark Invest’s CIO, noted that this target is the lower boundary in a bull case scenario.
In a base case, the CEO predicted that the premier asset would surge to between $700,000 and $750,000. Meanwhile, it would reach at least $300,000 in a worst-case scenario, which is still an over twofold increase from the current market price.
Throwing more light on the logical theory behind this assertion, Wood cited several factors that would drive this ambitious price rally. For perspective, she highlighted that Bitcoin, as digital gold, will demonetize physical gold as market investors reallocate from the old to the new.
Furthermore, the Ark Invest executive emphasized that institutions “are just testing the waters” on Bitcoin. She insisted that big players have barely entered the Bitcoin market, a sentiment that Bitwise’s CIO Matt Hougan shares. Recall that he recently highlighted that 95% of Bitcoin’s supply is already in circulation and owned by entities, while 95% of investable money has yet to flow into the crypto market.
For perspective, there are 202 entities holding Bitcoin, with public companies dominating proceedings. While institutions like Strategy (568,840 BTC), Block. one (164,000 BTC), Tether (100,521 BTC), and Marathon Digital (48,137 BTC) are some of the top holders of Bitcoin, Wood suggests that capital would flow in from more major market players as adoption advances.
Meanwhile, with less than 1 million BTC left ever to be minted, Wood maintains that the dwindling supply and emerging burgeoning demand for the rare asset would spark a supply shock and drive the expected rally to $1.5 million.
Bitcoin Could Go as High as $2.4M: Ark Invest
Wood drew inspiration from a recent report shared by David Powell, an on-chain analyst associated with Ark Investment, in her Bitcoin prediction. The outline, published in April, saw the prominent asset manager revise its earlier $1 million to $1.5 million Bitcoin projection by 2030.
Citing improved adoption and the possibility that nation-states would create a reserve for the premier asset, Ark Invest forecasted that Bitcoin could surge to as high as $2.4 million in a best-case scenario.
Moreover, the report also considered the data that 40% of Bitcoin’s total supply has been vaulted or inactive, a condition that Tether’s Paolo Ardoino predicted quantum computers could change. With just 60% available and 95% already mined, the growing institutional adoption would drive prices to $2.4 million per coin.
Interestingly, there are bigger predictions for Bitcoin. Top investment manager Lawrence Lepard predicted that Bitcoin would reach $10 million in the long term, while Strategy’s Michael Saylor projected a rally to $13 million per coin in the next 20 years.
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