ARK Invest CEO Cathie Wood stated in a statement that stablecoins have taken over some of the functions previously thought to be undertaken by Bitcoin, and that they have reduced BTC’s long-term bull scenario by approximately $300,000.
Speaking to Andrew Ross Sorkin and Joe Kernen on CNBC’s Squawk Box program, Wood stated that stablecoins are scaling much faster than expected, especially in developing countries.
He argued that in these regions, stablecoins now function as a “digital dollar” as a means of payment and savings, a role they had previously expected Bitcoin to take on.
“Stablecoins are taking over some of the role we thought Bitcoin would play,” Wood said. “Given what’s happening with stablecoins, we can maybe take $300,000 out of our bull case.”
Wood’s assessment refers to ARK Invest’s previously announced $1.5 million bull case for 2030. The company raised this estimate to $2.4 million in April with a more aggressive modeling approach. The same report also published a $1.2 million base case and a $500,000 bear case for Bitcoin.
Despite this, Wood stated that Bitcoin still serves as “digital gold” and is a cornerstone of the new global financial system. While dollar-pegged stablecoins represent cash, Wood said, Bitcoin remains a holistic asset in its own right. He also noted that institutional investors are just starting to enter Bitcoin, and that the cryptocurrency is in a unique position where “technology, a global monetary system, and a new asset class coexist.”
*This is not investment advice.