- Ark Invest CEO Cathie Wood has issued a $1.5 million price target for Bitcoin.
- Spot Bitcoin ETF sentiment remains the key catalyst for this bullish call.
In a recent CNBC interview, the CEO of ARK Invest, Cathie Wood shared her updated predictions for Bitcoin’s future price, presenting a bullish scenario of $1,500,000 and a bearish forecast of $250,000.
Wood’s Bullish Bitcoin Forecast
Wood’s optimistic prediction reflects a 50% increase from her previous estimate of $1 million. This revelation comes in the wake of the Securities and Exchange Commission’s (SEC) approval of spot Bitcoin Exchange-Traded Funds (ETFs) in the United States.
Latest 2030 #Bitcoin Price Projection after #BitcoinETF Approval -Cathie Wood, ARK Invest CEO, Unveils Her Vision:
Bear #Scenario: $250,000
Base Scenario: $600,000
Bull Scenario: $1.5 Million
Send it!
#CryptoForecast #BTC pic.twitter.com/4rx1wvr9iK
— Marcel Knobloch aka Collin Brown (@CollinBrownXRP) January 12, 2024
ARK Invest, among the asset managers approved by the SEC for Bitcoin ETFs, commenced trading on January 11, contributing to a brief surge in Bitcoin’s price to over $49,000. However, the cryptocurrency relinquished some gains and is currently trading 1.7% lower with price pegged at $46,005, with a market cap of $900.7 billion and a 24-hour trading volume of $44.3 billion.
Wood highlighted that the SEC’s approval serves as a “green light” for the bull case, indicating an increased probability of Bitcoin reaching her $1.5 million target. The ARK Invest CEO’s initial support for the $1 million price prediction was grounded in metrics such as hashrate, long-term holder supply, and non-zero balance addresses. The recent regulatory nod has added another layer of confidence in the forecast.
However, she also outlined a bearish scenario with a price target of $250,000 and a base case of $600,000. These scenarios consider various market dynamics and uncertainties that could impact Bitcoin’s trajectory, emphasizing the importance of a diversified approach to investing in this digital asset.
Notably, the ARK Invest boss is not alone in its positive outlook for Bitcoin. Standard Chartered Bank recently predicted a potential rise to $200,000 by the end of 2025, drawing parallels to the growth of gold after the introduction of the first U.S.-based gold Exchange-Traded Product (ETP) in 2004.
Additionally, as indicated in an earlier report, CryptoQuant’s on-chain data analysis suggests that regulatory approval for spot Bitcoin ETFs could lead to an influx of approximately $155 billion into the market, potentially propelling Bitcoin’s market capitalization to new heights.
The Bitcoin ETF Impact on Market Dynamics
The approval of spot Bitcoin ETFs has already resulted in considerable market activity. Eric Balchunas, a Senior ETF Analyst, highlighted an extraordinary 703,000 individual trades across 11 spot ETFs, surpassing the trade volume of the popular $QQQ ETF. This surge in participation indicates a growing grassroots-level interest, marking a pivotal moment in ETF history.
Furthermore, there has been a noteworthy movement in trading preferences, with investors selecting newer, more cost-effective ETFs offered by industry giants such as BlackRock and Fidelity Investments over traditional choices like Grayscale Bitcoin Trust (GBTC).
Timothy Peterson, an investment manager from Cane Macro, estimated that the trading activities surrounding the ETF launch could necessitate the purchase of approximately 47,000 Bitcoin, amounting to $2.1 billion.
