Cathy Wood Explains How Bitcoin Could Reach $1.5 Million By 2030

ARK Invest CEO Cathy Wood said Tuesday that she and her fund are now more confident in their “bull case” for bitcoin (BTC): $1.5 million by 2030.

The investment manager’s confidence has been boosted by bitcoin’s positive response to the regional banking crisis in the United States in March.

Bear, Bess and Bull Case

Ark published a bear, bess and bull Thesis Come back in January for more on where bitcoin will be in 2030. All price targets were multiples of bitcoin’s price today, which were $258,500, $682,800, and $1.48 million, respectively.

Each case produced different estimates for the total market share of various financial use cases that bitcoin could capture. The bullish case is largely based on bitcoin absorbing $50% of gold’s market capitalization, while also claiming 6.5% of the institutional asset base and 10% of the M2 money supply in emerging markets.

in one Interview With Bloomberg on Monday, Wood said ARK’s confidence was “increased” in the bull case in March when regional banks including Silvergate Bank, Signature Bank and Silicon Valley Bank (SVB) all collapsed after facing heavy withdrawal pressure Were.

Cathy Wood of ARKK: On #bitcoin “An insurance policy is against two things: forfeiture of wealth, either directly or from inflation, or in a deflationary world, what is it a hedge against? It’s a hedge against counterparty risk. We wouldn’t have ’08-’09 with bitcoin pic.twitter.com/jk9hR0Lsid

— Playeditor (@playeditor) 17 July 2023

“Bitcoin skyrocketed from $19,000 to $30,000 as regional banks went bankrupt and stocks plummeted,” Wood said. In Wood’s view, the rally signaled a “flight to safety” among investors that “everybody” would eventually want.

bitcoin as insurance

For one, Wood said that bitcoin insures against wealth confiscation, both directly and indirectly. While direct confiscation means stealing someone’s property by force, indirect confiscation is inflation—the devaluation of the national currency, especially the supply of which has increased astronomically through currency printing.

The supply of bitcoin is programmatically limited to 21 million units, making this style of inflation impossible. Nevertheless, even in a deflationary environment for fiat, Wood said bitcoin presents a hedge against counterparty risk.

“With bitcoin we will not have 08’/09′,” he said. “Everything is decentralized and transparent.”

Wood isn’t the only billionaire with a hyper-bullish long-term thesis for bitcoin. Michael Sailer, executive chairman of MicroStrategy, has predicted that the market capitalization of bitcoin could rise to $100 million – meaning BTC is worth $4.7 million per coin.

Other bulls are confident that bitcoin will perform strongly over the next 18 months. This year, Rich Dad Poor Dad author Robert Kiyosaki and Standard Chartered Bank have both called for the price to hit $120,000 per coin by 2025.