Key Points
- Ark Invest CEO Cathie Wood reiterates her bullish prediction for Bitcoin, seeing a potential value of $1.5 million.
- Wood credits the recent surge in Bitcoin’s price to growing institutional interest and the launch of ETFs in the US.
Cathie Wood’s Bitcoin Price Prediction
Cathie Wood, the CEO of Ark Invest, recently reiterated her bullish outlook on Bitcoin (BTC) in a podcast interview. She stated that she sees Bitcoin potentially reaching a value of $1.5 million. Wood discussed the reasons why people invest in Bitcoin and how innovation can generate returns for investors.
Wood highlighted that one of the key factors driving Bitcoin’s price is the growing interest from institutions, spurred by the launch of Exchange-Traded Funds (ETFs) in the United States. She stressed that many individuals are now understanding what Bitcoin represents, thanks to the ETF launch.
The Role of Macroeconomic Factors
Despite macroeconomic factors such as interest rates posing a threat to the global economy, Wood stated that Ark Invest views Bitcoin as both a risk-on and risk-off asset. She pointed out that in the past, Bitcoin has consistently increased in value whenever there is fear of a debt crisis. Wood cited the collapse of Silicon Valley Bank last year as an example, noting that Bitcoin’s price more than doubled at the time.
Wood also shared Ark’s strategy for Bitcoin investment. She mentioned that Coinbase Global Inc, Robinhood Markets Inc, and Block Inc are significant parts of the company’s portfolio. In addition to these companies, Ark Invest has launched some futures funds, three of which are actively managed.
Speaking about the upcoming halving event’s impact on Bitcoin’s price, Wood noted that the limited supply of Bitcoin could potentially cause a similar dynamic to previous cycles. However, she warned that it might take some time after the event for Bitcoin to see a significant increase in its price.
It is worth noting that Wood is not the first to predict Bitcoin’s price reaching the $1 million mark. In December, Perianne Boring, the founder and CEO of the Chamber of Digital Commerce, predicted that Bitcoin’s price would skyrocket to $1,000,000 by 2029. Boring’s bullish prediction is based on the assumption that about 40% of US households own some type of crypto. She aims to increase adoption to an aggressive 90% by 2029.
At the time of writing, Bitcoin is trading at $66,227, reflecting a 0.52% increase in the past 24 hours. The market capitalization increased by 0.5% to $1.3 trillion, while the trading volume decreased significantly by 31.8% to $29 billion.
Ark’s Performance in the Spot Bitcoin ETF Market
Wood’s Bitcoin price target comes amid a weekly drawdown in the asset’s price. On Wednesday, ARK 21Shares Bitcoin ETF (ARKB) recorded outflows of $87.5 million, surpassing Grayscale’s Bitcoin Trust (GBTC) by about 1,300 BTC. This marked the fund’s second consecutive day of losses as it lost $300,000 in assets the day before.
Despite these losses, ARKB is among the big players in newly launched spot Bitcoin ETF offerings. It has $2.2 billion in its recorded Assets Under Management (AUM), with total Bitcoin holdings of 44,662 BTC.
