Ark Invest CEO Cathie Wood on Thursday told CNBC’s Squawk Box that she has reduced her most aggressive Bitcoin price outlook for 2030, saying that stablecoins are now taking on a function she once expected Bitcoin to handle.
She said, “So our bullish forecast out there is $1.5 million by 2030. Given what’s happening to stablecoins, which are serving emerging markets in a way that we thought bitcoin would, I think we could take maybe $300,000 off of that bullish case just for stablecoins. So watch that space. Stablecoins are scaling here much faster than anyone would have expected.”
Cathie added that “Stablecoins are usurping part of the role that we thought Bitcoin would play,” and added that the pace of stablecoin growth has been stronger than her team expected.
She explained that stablecoins are being used in emerging markets for payments and everyday transactions in ways the Bitcoin network was once projected to support. Cathie said:
“Given what’s happening to stablecoins, which are serving emerging markets in a way that we thought Bitcoin would, I think we could take maybe $300,000 off of that bullish case just for stablecoins.”
Cathir pointed out that the pattern is not small or temporary, saying, “Stablecoins are scaling here much faster than anyone would have expected.” For years, Ark Invest positioned Bitcoin as a store of value and a settlement layer for large transfers.
Cathie now sees stablecoins, which are pegged to national currencies, filling some of that settlement and transfer space. She also pointed out that the United States is now seeing institutions experiment with new payment systems that have stablecoins at their center.
Bitcoin falls below $100,000 amid market-wide plunge
Earlier this week, Bitcoin fell below $100,000 for the first time in more than four months during a sell‑off across risk markets. It most recently traded near $102,510.
Even with the price pullback and the upward forecast adjustment slightly lowered, Cathie said her core thesis on Bitcoin has not changed. She said, “Bitcoin is a global monetary system, it is the lead in a new asset class, and it’s a technology, all wrapped in one.”
She added that major institutions are still at the very early stage of involvement, saying, “Institutions really have just dipped their toes into this space. We have just started, so we have a long way to go.”
Cathie stressed that the expansion of the crypto ecosystem continues. “I think the whole space gets bigger,” she said. “This is, you know, a global monetary system really going digital without government oversight, very private. So it’s a very big idea.”
At the same time, analysts at JPMorgan, led by Nikolaos Panigirtzoglou, have pointed out that the market has fallen close to 20% from recent highs.
The most severe crash took place on October 10, triggered by record‑scale liquidations in perpetual futures, which they described as the largest futures liquidation event in the history of crypto markets.
Another liquidation event happened on November 3, which came at the same time as the $120 million Balancer exploit in decentralized finance, which added concern over smart contract security.
Analysts evaluate futures and volatility in Bitcoin and Ethereum
The JPMorgan report said the deleveraging in Bitcoin perpetual futures appears to be mostly complete now. They pointed to the ratio of open interest in perpetual futures versus market value returning to long‑term normal levels. They also said similar patterns can be seen with Ethereum, although the leverage reduction there happened with less intensity.
In CME futures markets, the analysts said the trend was reversed, saying there have been more liquidations in Ethereum futures than Bitcoin futures. The report also said that while there have been redemptions in crypto exchange‑traded funds recently, the withdrawals were small when compared with the inflows seen during the first two weeks of October.
The analysts also examined Bitcoin in relation to gold, saying the recent rise in gold volatility has made Bitcoin look more favorable on a risk basis. They noted that the Bitcoin‑to‑gold volatility ratio has fallen below 2.0, meaning Bitcoin currently requires about 1.8 times more risk than gold to hold.
Based on that ratio, and on Bitcoin’s present market size of about $2.1 trillion, they estimated that Bitcoin would need to rise nearly 67% to match the private‑sector gold investment total of about $6.2 trillion.
In that scenario, the implied Bitcoin price would be roughly $170,000.
Bitcoin is currently near $103,000, up 0.2% over the past day.
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Source: https://www.cryptopolitan.com/cathie-wood-300k-off-bitcoin-price-target/