Why Cathie Wood stays confident in bold stakes
Following news that Ark Invest has made investments in Grayscale’s deeply discounted Bitcoin fund, CEO Cathie Wood is doubling down on a bold bet that the top cryptocurrency will reach $1 million per coin by 2030.
Is such a high price prediction realistic, considering the recent collapse of the crypto market? And can Wood’s call be trusted after the ARK Innovation ETF’s Bitcoin-par decline? Here are all the factors behind the $1M per BTC goal in less than a decade.
Cathie Wood says Bitcoin will be worth 1 million per coin by 2030 pic.twitter.com/L8mw8u0SZO
— Bloomberg Wealth (@wealth) 22 November 2022
Cathie Wood: Yes, Bitcoin will reach $1 million by 2030
In an interview with BloombergArk Invest CEO Cathie Wood was asked about her previous prediction that Bitcoin would reach a price of $1 million per coin by the year 2030. Undeterred by the recent bear market in crypto and stocks, Wood recommitted to the effort.
Wood says the recent fallout from FTX and other top crypto firms only helps “battle test” the “infrastructure and thesis” of the first-ever cryptocurrency. She adds that Bitcoin will come out of this “smelling like roses”.
The comment is perhaps a reference to how third parties were badly at fault in the recent collapse, while the thesis of a decentralized future without intermediaries has only been further proven.
While Wood herself is not skeptical of Bitcoin, she says that the situation may make institutions hesitate to jump in, but in the end it may be “more comfortable” to invest in BTC.
Bitcoin reaching $1M by 2030 would be 6,000% | Source: BTCUSD on TradingView.com
Is 6000% ROI within 8 years possible from here?
Take the Ark Invest CEO’s comments with a grain of salt. While her idea that bear markets test Bitcoin and prove that the network is more robust and therefore more valuable in each cycle, her picks have not been winners lately.
The ARK Invest Innovation ETF is down about 79% from its peak. But Bitcoin is also down 79% from its late 2021 high, and has bounced back several times after worse withdrawals.
At a price of $1M per BTC, the top crypto asset by market capitalization would have to climb more than 6,000% from its current bear market low in less than eight years. Bitcoin has grown by almost 60,000% in the last eight years, so anything is possible – despite being unlikely.
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Featured image from iStockPhoto, Charts from TradingView.com
