Following the news that Ark Invest has invested in Grayscale’s heavily discounted Bitcoin fund, CEO Cathie Wood is doubling down on the bold bet that the top cryptocurrency will reach $1 million per coin by 2030.
Is such a high price prediction realistic given the recent collapse of the crypto market? And can Wood’s call be trusted after the fall of the ARK Innovation ETF similar to Bitcoin’s? Here are all the factors behind the goal of $1 million per BTC in less than a decade.
Cathie Wood says Bitcoin will be worth 1 million per coin by 2030 https://t.co/GQFkjlb8vc pic.twitter.com/L8mw8u0SZO
— Bloomberg Wealth (@wealth) November 22, 2022
Cathie Wood: Yes, Bitcoin will reach $1 million by 2030
In an interview with BloombergCathie Wood, CEO of Ark Invest, was asked about her previous prediction that Bitcoin would reach a price of $1 million per coin by the year 2030. Wood, undeterred by the recent bear market in crypto and stocks, re-entered the bet.
Wood says the recent fallout from FTX and other top crypto companies only helps to “fight” the “infrastructure and the contention” of the first-ever cryptocurrency. She adds that Bitcoin stems from this “rose-smelling”.
The comment perhaps hints at the large third-party debt in the recent collapse, while only further proving the thesis for a decentralized future without intermediaries.
While Wood herself isn’t skeptical about Bitcoin, she says the situation could make institutions hesitant to get in, but that ultimately it could be “more comfortable” to invest in BTC.
Bitcoin reaching $1M by 2030 would be 6,000% | Source: BTCUSD on TradingView.com
Is 6,000% ROI within 8 years possible from here?
Take the Ark Invest CEO’s comments with a grain of salt. While her idea of bear markets testing Bitcoin and proving that the network is more resilient and thus more valuable in each cycle, her picks haven’t been winners lately.
The ARK Invest Innovation ETF is down about 79% from its peak. But Bitcoin is also down 79% from its all-time high in late 2021 and has recovered several times from worse recordings.
At a price of $1 million per BTC, the highest crypto asset by market capitalization should rise more than 6,000% in less than eight years from its current bear market low. Bitcoin has grown by almost 60,000% in the past eight years, so anything is possible, even if it’s unlikely.
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