‘Financial superhighway’ Bitcoin will hit $3.8m
ARK Invest CEO Cathie Wood expects Bitcoin’s value to soar on “financial superhighway” toward $3.8 million.
“If institutional investors were to allocate a little more than 5% of their portfolios to bitcoin, as we think they will over time, that alone would add $2.3 million to the projection I just gave you,” Wood said at Friday’s Bitcoin Investor Day conference in New York.
In January, Wood predicted Bitcoin might reach $1.5 million by 2030.
The cryptocurrency has increased by 45% since the beginning of the year and is currently trading at around $64,844.
Further, Wood noted that the U.S. Securities and Exchange Commission’s (SEC) hesitation in accepting institutional investments in Bitcoin might propel the price.
Recall how Ark Invest was among 11 companies — others included BlackRock and Fidelity — to receive SEC approval for spot Bitcoin ETFs earlier this year.
The introduction of these products has increased demand, shattering previous records for inflows into US ETFs and sparking new interest in Bitcoin, which these funds directly invest in and hold.
Several industry experts also echo Wood’s stance that the upcoming Bitcoin halving event in April will cause a supply shock. As such, the dwindling supply would support the current demand-driven rally.
Wood believes that the impending halving will have a similar impact as past halving events in 2012, 2016, and 2020, which resulted in huge price hikes for Bitcoin.
She further reminded the audience that we are still in the early stages of developing an internet-based financial ecosystem that will eliminate many intermediate costs.
Wood’s comments reinforce her January prediction that Bitcoin could reach $1.5 million by 2030. She sees these trends as critical to Bitcoin’s widespread adoption.
As for Bitcoin’s growing importance in emerging economies like Nigeria, Wood expects Bitcoin to serve as both a hedge against economic volatility and a promising investment.
