New York — Cathie Wood, the founder of ARK Invest, recently revealed ambitious projections for Bitcoin, predicting the cryptocurrency could exceed $650,000 by 2030. During an interview on CNBC Squawk Box, Wood outlined her firm’s optimistic forecast for the digital currency, which at present trades at about $91,287.
Wood, whose firm was among the first public asset managers to invest in Bitcoin back in 2015 when it was priced at $250, remains bullish on its future. Citing reasons ranging from regulatory changes to increased mainstream adoption, she believes Bitcoin is poised for massive growth. “In our base case, Bitcoin could reach around $650,000 by 2030, and in our bullish scenario, it could skyrocket to between $1 million and $1.5 million,” Wood shared with CNBC.
One of the major catalysts for this expected surge is the anticipated regulatory clarity incoming from what Wood referred to as a “pro-crypto” administration under the newly elected U.S. President Donald Trump. She explained that the Trump administration is expected to offer “regulatory relief” not just within crypto but across other innovative sectors, including healthcare.
Another key factor is Bitcoin’s evolving perception among traditional financial institutions. “Bitcoin is now viewed not just as a global monetary system but as a burgeoning asset class,” Wood stated. She emphasized that more institutional investors and asset allocators are beginning to realize the unique behavior of Bitcoin as an asset, distinct from conventional financial instruments which are prompting them to include it in their portfolios.
Moreover, historical trends in Bitcoin’s price behavior add to ARK Invest’s optimistic outlook. Wood pointed out, “In years when Bitcoin has halved and the inflation rate has dropped to around 0.9%, it typically experiences significant price increases.”
As of the last 24 hours, Bitcoin’s value has witnessed a 3.7% increase, reinforcing Wood’s positive stance on its growth trend. Despite Bitcoin’s past volatility, Wood’s analysis and ARK’s proven track record of early investment into cryptocurrency paint a robust picture of potential for investors.
These predictions come amid a time of increasing engagement with cryptocurrencies, both from individual investors diving into digital assets and institutions integrating them into broader financial strategies. As the landscape of investment and currency continues to evolve with technological advancements, Bitcoin’s trajectory remains a critical watchpoint for both proponents and skeptics of cryptocurrency.
As always, potential investors in Bitcoin or any digital assets should perform their own research and consider their risk tolerance, especially considering the high volatility and unique market dynamics of cryptocurrencies.