Cathie Wood, CEO of ARK Invest, is no stranger to Bitcoin predictions, as the asset manager has previously said that BTC will go to $500,000 and even reach $1 million. As always, Wood remains steadfast in her Bitcoin predictions and once again comes up with an even bolder figure for the cryptocurrency pioneer.
Cathie Wood Says Bitcoin at $1 Million
Cathie Wood, the founder and CEO of ARK Invest, an investment firm with more than $6 billion in assets under management (AUM), has released a new price forecast for Bitcoin. The CEO had a chat with Natalie Brunell, history of the podcast “Coin Stories”, where she made this new prediction.
As Wood explains, the efforts of ARK Invest’s research team have shown that Bitcoin’s growth will be largely driven by institutional adoption. They expect digital assets to undergo a massive rally early in the next decade.
Wood points to the adoption trend of new assets by these large institutional investors and how they often tend to allocate their portfolios. As the CEO notes, between 5% and 6% of institutional investors’ portfolios were allocated to assets such as real estate after managers took the plunge.
Bitcoin could be seen as entering a phase where institutional investors are still only putting about 1% into the digital asset to see how it plays out. Then they gradually increase their allocation until they reach that 5% to 6% range. When this happens, as Wood has previously noted, BTC will cross the seven-figure mark.
BTC price fails to reclaim $28,500 | Source: BTCUSD on Tradingview.com
Wood tells Brunell that she wants the Bitcoin price to surpass $1 million by 2030. But this doesn’t mean the CEO doesn’t expect the digital asset to grow further, as she estimates its price at $1.48 million over the next seven years.
The ARK Invest founder further points out that some companies are already starting to exceed the conservative 1% allocation. “Tesla and Square have Bitcoin on their balance sheets. But we make very conservative assumptions and I think the corporate bond assumption is 2.5% of all cash and cash equivalents in Bitcoin.”
Wood stated:
If we are right and Bitcoin’s purchasing power becomes so apparent in the coming years, it means purchasing power will rise instead of cash [dollars] remains relatively flat, if it does not deteriorate in real terms, then more and more corporate government bonds will put Bitcoin on their balance sheets.
She believes analysts at these companies will ask companies to put money into BTC instead of leaving it in cash as its value continues to decline.
