- Ark Invest CEO Cathie Wood has projected Bitcoin’s price to skyrocket beyond $1 million within the next six years.
- Woods sees more institutional investors adopting Bitcoin, contributing to its scarcity and resulting in price increases with time.
Ark Invest CEO Cathie Wood sees Bitcoin on track to exceed $1 million within the next six years. Speaking at a Bloomberg interview on Thursday, Wood backed her bold prediction with an expected increase in institutional exposure to and adoption of BTC.
Institutional Investors To Send Bitcoin Above $1M
Ark Invest has always been bullish on Bitcoin’s prospects and has increased their expectations on the large-cap crypto after the Trump win, which automatically created a possibility for reshuffling the hostile regulatory landscape.
Wood and her company’s position on Bitcoin is no surprise, considering that Ark Invest was the first public fund manager to invest in Bitcoin. She has sustained her belief in Bitcoin as a currency and technology all these years.
During a CNBC interview in November, Wood laid out her company’s 2030 target for Bitcoin. “In our base case, it’s around $650,000. In our bull case, it’s between $1 million and 1.5 million dollars,” said Wood.
Wood doubled down on her prediction in a recent interview with Bloomberg anchor Romanie Bostick, when she was asked if she still sticks to her predictions of Bitcoin “hitting some of those lofty milestones” she’d previously talked about.
“…Now that we are going to get more regulatory greenlights, we are seeing more institutional focus on this new asset class,” replied Wood.
The Ark Invest Founder stated that institutional investors will sooner or later begin taking into consideration the low supply of Bitcoin – capped at 21 million units which at the moment has over 19.5 million units already in circulation.
“If institutional investors are looking at this new asset class more seriously,…they must consider an allocation. And so supply-demand; they are doing the arithmetics. And we see a million to a million and a half by 2030,” she added.
BTC’s Programmed Scarcity Gives It an Edge Over Gold
Wood also went further to tackle the notion that Bitcoin lacks the basic traditional fundamentals that determine the value of asset classes like stocks and only thrives on the speculative demand-supply dynamic.
“It’s a very big idea and It’s not just speculative,” she said. It’s a global monetary system that is rules-based. It is private, it is digital, it is decentralized, and it is backed by the largest computer in the world.”
She noted that although Bitcoin and gold should be in the same category, gold is fairly scarce. However, with the last halving, Bitcoin’s increase in supply dropped to around 0.9 percent per year, making it more scarce than gold.
“The difference between Gold and Bitcoin is, when the Gold price goes up as it has, production goes up. The rate of increase in the supply goes up. That can not happen with Bitcoin.”
BTC trades at $98,317 as of this writing at 9:24 am UTC. It smashed a new all-time-high, reaching over $108K this week, signalling even more ATHs, between the final days of the year and January when US President-elect Donald Trump assumes office.
