ARK Invest’s CEO, Cathie Wood, has confidently projected that Bitcoin‘s value could soar to an incredible $3.8 million. Her prediction builds on an earlier forecast where she suggested the cryptocurrency might rise to $1.5 million. Wood’s optimism is grounded in the potential for institutional investors to incorporate Bitcoin into their portfolios, with a suggested minimum allocation of 5%.
Key Drivers for Bitcoin’s Growth
The investment expert highlighted the upcoming Bitcoin block reward halving as a significant bullish factor for the cryptocurrency’s value this year. Wood’s firm, ARK Invest, recently secured SEC approval to launch a spot Bitcoin ETF, providing investors with a streamlined avenue for Bitcoin exposure. Wood anticipates Bitcoin to continue its ascent, capturing more market share from traditional assets like gold.
Wood’s earlier prediction also included an astonishing $25 trillion market cap for the entire cryptocurrency sector by 2030. This would mark a phenomenal growth trajectory for digital currencies, with Bitcoin leading the pack.
Market Reaction and Momentum
At the time of reporting, Bitcoin’s price hovered slightly above $64,000, a striking contrast to Wood’s ambitious $3.8 million target. Despite the recent all-time high of $73,750, Bitcoin has witnessed a downward trend, influenced in part by net outflows from spot ETFs.
The cryptocurrency’s journey, according to Wood, is far from over, as the upcoming halving and increasing institutional interest are set to fuel its rise. ARK Invest’s support through their new ETF offering may also play a crucial role in making Bitcoin accessible to a broader range of investors, further driving its value upward.