Cathie Wood’s Ark Says Bitcoin Could Hit $1.5 Million in 7 Years

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FTX customers are still unsure if they will get their money back, the Sam Bankman-Frieds criminal trial is ongoing, and the crypto winter of deflated coin values ​​continues to drag on. But one of cryptocurrency’s biggest optimists still says the coin that started it all is poised for a massive comeback.

Cathie Woods Ark Investment Management, the company that has continued to buy crypto and shares of crypto companies even during the industry’s historic downturn over the past year, is betting that Bitcoin will hit new highs soon enough. All investors need is a little patience and faith.

Ark predicted that Bitcoin would rebound from its current lows to eventually be worth $1.48 million by 2030 in a new report released this week, a bullish scenario that would see the value of Bitcoin increase by more than 6,300% in just seven years. .

Bitcoin is currently trading at around $23,000, a far cry from its all-time high of nearly $70,000 reached in November 2021. It was a good time for crypto bulls, when up to a quarter of holders were convinced that Bitcoin could exceed $100,000 in less than five years. Cathie Wood was exceptionally optimistic about Bitcoin’s chances, even predicting in 2021 that it could hit $500,000 by 2026 if institutional investors and investment banks start piling in.

It was also the peak of crypto, it turns out. As inflation rose last year and enthusiasm for speculative assets, including cryptocurrencies, waned, the crypto winter began and coins fell in value.

In the 12 months since its November 2021 peak, the sector has reduced its value by more than $2 trillion, with Bitcoin in particular down 65% since then. Crypto companies that had become mainstays, including Coinbase and Genesis, began to cut and lay off staff. A number of crypto companies, including Three Arrows Capital and Celsisus, filed for bankruptcy, while the entire industry was rocked in November when FTX, one of the world’s largest crypto exchanges, crashed. collapsed and lost over $8 billion in client funds.

But through it all, Cathie Wood and Ark held their big Bitcoin bet. Even during FTX’s cataclysmic implosion, Ark’s research director Frank Downing said that companies’ belief in the blockchain technology underlying Bitcoins only increased following the crash. In December, Wood tweeted that the Bitcoin blockchain hadn’t budged during the FTX debacle, which she took to signify the coins’ transparency and resilience during downtime.

Over the next seven years, Ark expects Bitcoin to grow into a multi-trillion dollar market due to its strong fundamentals, according to the new report, as the company expects the crypto asset to outperform all major asset classes over longer time horizons. The industry’s recent struggles may even help restore confidence in Bitcoin in the long run, as exchanges become more transparent with their finances to avoid an FTX-like fate, Ark explained. Institutional investors including BlackRock and Fidelity have not wavered on their commitment to Bitcoin despite the market downturn, the report also found, bolstering the coins’ fundamentals.

Even in the Arks bearish case scenario, the value of Bitcoins is expected to reach an all-time high of $258,500 by 2030. In the base business scenario, Bitcoin will reach a value of $682,800.

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