Cathie Wood, the renowned CEO of Ark Invest, brought an optimistic outlook for the future of Bitcoin (BTC). She predicts that the world’s best-known cryptocurrency could reach a value of US$1.5 million by 2030, a scenario she describes as her company’s “optimistic case.”
This projection was shared by Wood during an interview with CNBC on January 11, a landmark day for Bitcoin with the start of spot Bitcoin ETF trading shortly after SEC approval on January 10. The introduction of these ETFs, which enable investors to purchase shares representing Bitcoin, is seen as a major step forward in the widespread acceptance of the cryptocurrency.
Wood firmly believes that the SEC’s approval of Bitcoin ETFs considerably raises the odds of a bullish scenario for Bitcoin. This approval is a crucial step towards widespread adoption of this digital asset, reinforcing investor confidence.
In addition to his optimistic scenario, Wood also offered a more conservative estimate for Bitcoin’s future value. It puts a price target of approximately $600,000 by 2030. That would equate to a market cap of more than $10 trillion, a significant increase compared to its current market capitalization of nearly $1 trillion. To reach the level of US$1.5 million per Bitcoin, the market capitalization would have to expand to around US$31 trillion.
Bitcoin ETFs increase chances of adoption and appreciation, according to Wood
This ambitious scenario is not just based on speculation. A 2021 report by McKinsey & Company showed that global assets grew from $440 billion in 2000 to $1,540 billion in 2020. Thus, Bitcoin would need to capture less than 3% of global assets to reach a value of $1 .5 million per coin.
Wood supports his confidence in Bitcoin by considering it a safe haven, mainly due to its protection against direct and indirect forms of wealth confiscation. It highlights Bitcoin’s response to the recent regional banking crisis in the US. She cites that it experienced a notable recovery from $19,000 to $30,000 as a sign of investors’ confidence in the asset.
Bitcoin’s limited supply is another crucial factor that Wood cites in his defense against inflation, making it a unique asset in the financial world. Its resistance to inflation, along with its potential as a hedge in deflationary scenarios, positions Bitcoin as a versatile financial tool.
These predictions from Wood reflect a sentiment shared by many industry experts. Tom Lee, managing partner at Fundstrat, also predicted that Bitcoin could reach $500,000 in the next few years. However, Arthur Hayes points to a trajectory towards $1 million per coin this cycle.
Disclaimer:
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
Source: https://portalcripto.com.br/cathie-wood-projeta-bitcoin-a-us-15-milhao-ate-2030-otimismo-no-mercado-cripto/
