As per the current market sentiment, Bitcoin appears to have begun a recovery rally surging above$16k. The asset is seeing significant resistance around $16,300.
Cathie Wood, CEO of Ark Invest, predicts that by the end of 2023, in anticipation of the next halving, Bitcoin’s price could potentially reach $1 million.
While the crypto critics are flashing all sorts of warning signs considering the domino effect in the industry, Wood appears to be positive on Bitcoin after ARK invested in Grayscale’s heavily discounted Bitcoin fund. As a result, she is doubling down on her previously audacious prediction that the price of the leading cryptocurrency will reach $1M per coin by 2030.
Given the recent fall of the crypto market, is such a grandiose price projection realistic? How reliable is Wood’s prediction in light of the ARK Innovation ETF’s drop, which is comparable to Bitcoin’s?
Here’s How BTC Price Could Reach $1M
Ark Invest CEO Cathie Wood was recently interviewed by Bloomberg, where she was asked about her earlier prediction that the price of a Bitcoin will reach $1,000,000 by 2030. Despite the recent decline in cryptocurrency and stock prices, she seems to be sticking to this.
She believes that the continued uncertainty surrounding FTX and other prominent crypto exchanges only combat tests the “systems and services and the thesis” of the original coin. She goes on to say that Bitcoin “will come out of this smelling like roses.” She remains optimistic in her stance that the coin will revive in the future despite the temporary losses.
Her comments seem to be a reference to the fact that outside parties were mostly to blame for the recent collapse, lending credence to the idea that a decentralized future free of middlemen is inevitable.
Although Wood does not harbor any skepticism towards Bitcoin, she acknowledges that the current circumstances may cause institutions to be hesitant before entering the market, but believes that they may eventually feel “more comfortable” investing in BTC once the situation stabilizes.
Ark’s Strategy Behind Stock Purchases
Wood also shut down the speculations that she had bought Coinbase and GBTC despite the downturn. She explained that, as part of its ongoing double-down strategy in the bear market, Ark made a purchase of 315,259 GBTC shares last week for a total value of $2.8 million. The financial services company now has a holding of 6.4 million GBTC shares, which are valued at $53 million.
Take It With A Pinch Of Salt!
Going by her old predictions, it would be good to not concentrate too much on Wood’s words.
Despite her belief that bear markets make Bitcoin stronger and, hence, more valuable, the reality is that her recent predictions have been busts.
Moreover, when compared to its all-time high, the ARK Invest Innovation ETF is down nearly 79%. Bitcoin is currently trading at a discount of 79% from its all-time high reached in late 2021, although it has recovered from larger losses many times before.
Hence, it is clear that to reach $1M per BTC, the leading crypto asset by market cap would need to increase in value by more than 6,000% from its current bear market bottom, which would take more than eight years. The value of Bitcoin has increased by approximately 60,000% over the past eight years, making the seemingly impossible attainable.
Regardless of predictions, it’s always best to do your own market research before investing in crypto.
Source: https://coinpedia.org/opinion/ark-invest-ceo-cathie-wood-predicts-bitcoin-price-for-2030/