Cathie Wood, CEO of ARK Invest, expects the value of Bitcoin to rise on the “financial highway” to $3.8 million.
“If institutional investors allocate just over 5% of their portfolios to bitcoin, as we think they will over time, that alone would add $2.3 million to the forecast I just gave you,” Wood said at the Bitcoin Investor Day conference on Friday. in New York.
In January, Wood predicted that Bitcoin could reach $1.5 million in value by 2030.
The cryptocurrency is up 45% since the beginning of the year and is currently trading at around $64,844.
Furthermore, Wood noted that the SEC's reluctance to accept institutional investments in Bitcoin could lead to higher prices.
Recall how Ark Invest was among 11 companies — including BlackRock and Fidelity — that received SEC approval for Bitcoin ETFs earlier this year.
The introduction of these products has fueled demand, shattering previous records for inflows into US ETFs and sparking new interest in Bitcoin, which these funds directly invest in and hold.
Many industry experts also echo Wood's position that the upcoming Bitcoin halving event in April will cause a supply shock. As such, a dwindling supply would support the current demand-driven rally.
Wood believes the impending halving will have a similar impact to previous halving events in 2012, 2016 and 2020, which led to significant spikes in Bitcoin prices.
She also reminded the audience that we are still in the early stages of developing an Internet-based financial ecosystem that will eliminate many intermediary costs.
Wood's comments reinforce her January prediction that Bitcoin would reach $1.5 million in value by 2030. She sees these trends as crucial to widespread Bitcoin adoption.
As for Bitcoin's growing importance in emerging economies like Nigeria, Wood expects Bitcoin to serve as a hedge against economic fluctuations and a promising investment.
