Why Cathie Wood Thinks Bitcoin Will Still Hit $1 Million By 2030 And Benefit From The FTX Collapse

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Cathie Wood’s bold $1 million bitcoin call surprised many on Wall Street amid the fallout from the crypto industry, and here’s how the investor came up with the prediction. The ARK Invest chief sees the world’s largest cryptocurrency hitting around $1.3 million by 2030, benefiting from the FTX turmoil, she said on the latest episode of CNBC PRO Talks with Dominic Chu. “In fact, we think this cycle has benefited bitcoin,” Wood said. “Sam Bankman-Fried didn’t like bitcoin…Because it couldn’t be controlled. It was decentralized, open, transparent, the antithesis of what FTX was.” “Bitcoin and Ethereum, I might add, stood out during this time because some of these opaque, closed, centralized ecosystems went bankrupt, collapsed,” Wood added. Bankman-Fried cryptocurrency exchange FTX has filed for Chapter 11 bankruptcy protection. FTX says it has more than 100,000 creditors, assets in the range of 10 to $50 billion, plus liabilities in the range of $10 billion to $50 billion. Distressed crypto firm BlockFi has also filed for Chapter 11 bankruptcy following the implosion of putative acquirer FTX. Bitcoin briefly fell to its lowest level in two years as digital coins reeled from the fallout from FTX’s demise. The cryptocurrency bounced above $16,000 on Tuesday. Wood, a longtime crypto bull, believes the price of bitcoin could rise if companies continue to diversify their liquidity and institutional investors continue to allocate 5% of their portfolio to the space. The innovation investor estimates that institutions now allocate around 2.5% to cryptocurrencies in their portfolios, less than the percentage exposure they started adding to real estate in the 1970s and markets emerging in the 1980s. “Crypto is the new asset class,” Wood said. “We always expect bitcoin to benefit. I think when this story is told and the a-ha moments take place, ‘wait. Sam Bankman-Fried didn’t like bitcoin. Oh, for some reason . What reason ?’ That’s why it might end up adding credibility.” Wood has been buying more crypto-related assets over the past two weeks during the crisis, including the Grayscale Bitcoin Trust and Coinbase. ARK said in a recent newsletter that there were “several silver linings” to these events, including that the bitcoin blockchain continued to operate during the FTX crisis and argued that this would push the industry to be more transparent.

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