Bitcoin has recently achieved a significant milestone, surpassing the $90,000 level, yet Cathie Wood of ARK Invest believes there is still substantial growth potential ahead. ARK was the first public asset management firm to invest in Bitcoin back in 2015, when its price was just $250. Wood emphasized that even at its current valuation, there remains ample opportunity for appreciation in the cryptocurrency space.
Wood anticipates that regulatory improvements will play a crucial role in fostering Bitcoin ’s ongoing momentum. With a supportive regulatory environment, institutions are likely to start viewing Bitcoin as a distinct asset class. This shift in perception means that institutional investors and asset allocators are recognizing Bitcoin ’s unique behavior compared to traditional assets, increasing the likelihood of its inclusion in broader investment portfolios.
The cryptocurrency market reached a peak value of $93,477 on November 13, according to data from CoinGecko, although it subsequently dipped before stabilizing over the $90,000 threshold by November 18. Wood has established a bold price forecast for Bitcoin , projecting that by 2030, the cryptocurrency could be valued at around $650,000 in a base scenario, and potentially between $1 million and $1.5 million in more optimistic conditions.
Wood further elaborated that the current optimism in the Bitcoin market is supported by on-chain analytics. Following Bitcoin ’s upcoming halving in April, the growth in the supply of Bitcoin is expected to diminish significantly, falling to just 0.9%, which is noteworthy as it would be below the long-term growth rate of gold for the first time.
Additionally, Wood highlighted the importance of regulatory change, suggesting that reducing the power of finance regulators like the Securities and Exchange Commission, along with advancements in innovations such as AI and digital assets, could significantly stimulate the U.S. economy.
