Cathie Wood, the head of Ark Invest, is Bitcoin (CRYPTO: BTC)’s top bull, and there is no wonder why such an asset has the capabilities it has. She has never wavered her position and is part of the camp that believes that even within the cryptocurrency market, the high chances that another political cabinet in the White House might elevate the value of Bitcoin. For many of these years, she has come up with some outlandish Bitcoin price predictions but her most controversial of them all projects the coin to reach about $3.8 million in the year of 2030. Yet, what does this signify to investors today? Let’s find out the possibilities.
With Bitcoin recently registering an all-time high, of $93,434.36 after the election of the new president in the year 2024, of course, the crypto market is busy with how far the leading currency, in this case,Bitcoin, can go. Wood has depicted different ranges of possibilities for the future price of Bitcoin by the year 2030, suggesting what the returns today even for the small investments could be. For example, at the current price of the coin which is $89,384.76, a person would invest $100 and buy 0.00112 BTC approximately. And this is how that investment could be multiplied based on Wood’s assumptions:
And in a bear case with Bitcoin hitting $258,500, that $100 investment would wow, grow to $289.52, a 189.5% increase.
- In the base case, where Bitcoin climbs to $682,000, the $100 would be worth $763.84, representing a 663.8% gain.
- A bull case of $1.48 million would amplify the $100 to $1,657.60, a rise of 1,557.6%.
- In the most bullish scenario, where Bitcoin hits $3.8 million, the same $100 would surge to $4,256.00—a monumental 4,156% return.
In the most pessimistic of hypotheses, the growth is still pretty big, while in the more positive projections by Wood, the returns become simply revolutionary. These numbers are not, of course, promises. Nonetheless, they illustrate the effect of investing even a small amount of money in assets like Bitcoin that have high upside potential.
There is also a reason why Wood remains optimistic. In the interview that she gave to CNBC, she explained why Ark Invest has got a competitive edge as it was the first asset management company in the world to make an investment in Bitcoin and this was already in 2015, when Bitcoin was worth merely $250. With the price of Bitcoin just shy of $90,000 today, she maintains that the price of the digital currency has plenty of room for growth, and that the regulatory landscape is also likely to very much improve under the new government.
This regulatory clarity is also very important. Wood is of the opinion that Bitcoin will evolve as an asset class in its own right and institutions and asset managers will begin to invest and allocate a portion of their assets to Bitcoin. Ark Invest was also one of the earliest to receive a green light for the bitcoin exchange-traded fund, Ark 21 Shares Bitcoin ETF (BATS:ARKB), which is already making headlines.
The forecast rate of $3.8 million is due to a more thorough evaluation that considers factors such as the institutional allocation of assets. Analysts estimated, and Wood agrees, that such institutions would invest slightly over 5% of their portfolio in Bitcoin. This carries a $2.3 million upside to her base case projection of $1.5 million. This results in the $3.8 million estimate above.
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Ark Invest goes beyond Bitcoin as the company is actively involved in investments for the entire scope of the cryptocurrency economy. The firm’s most notable fund, the Ark Innovation ETF (NYSE: ARKK), has a considerable portfolio dedicated to companies engaged in cryptocurrency activities such as Coinbase Holdings (NASDAQ : COIN) that makes up 9.5% of the fund and Robinhood Markets (NASDAQ : HOOD) at 5%.
With the price of Bitcoin hitting new heights and new records on different days, including the recent record set on November 13 of $93,434.36, Wood’s faith in the future of Bitcoin remains intact. In as much as her predictions may be right or wrong, the investment techniques and philosophies that she has hold much water on the issue of Bitcoin and cryptocurrencies in general.
The information provided in this article is for general informational purposes only and does not constitute investment advice. Readers should not rely on the content of this article to make investment decisions. Investing in Bitcoin or other cryptocurrencies involves significant risk, including the possibility of losing the entirety of your investment. Cryptocurrencies are highly volatile and may not be suitable for all investors. We strongly recommend consulting with a qualified financial advisor or conducting thorough research before making any investment decisions.
