Cathie Wood Explains How Bitcoin Can Reach $1.5 Million By 2030

Cathy Wood, CEO of ARK Invest, said Tuesday that she and her fund are now more confident in a “bull case” for Bitcoin (BTC): $1.5 million by 2030.

The increase in investment manager confidence stems from Bitcoin’s positive response to the US regional banking crisis in March.

Bear, base and bull case

She posted a bear, pedestal, and bull coffin thesis Where will Bitcoin be in 2030 in January. All price targets were well above Bitcoin’s price today, at $258,500, $682,800, and $1.48 million, respectively.

Each case provided different estimates of the total market share of the different financial use cases that Bitcoin could eat. The bull run was largely based on Bitcoin absorbing 50% of the gold market cap, while also claiming 6.5% of the institutional asset base and 10% of the M2 money supply in emerging markets.

in interview With Bloomberg on Monday, Wood said ARK’s confidence in the upside was “increased” in March when regional banks including Silvergate Bank, Signature Bank and Silicon Valley Bank (SVB) collapsed after facing massive withdrawal pressure.

Kathy Wood from ARKK: Turn on # Bitcoin “It is an insurance policy against two things: expropriation of wealth, either directly or through inflation, or, in a deflationary world, what is a hedge against counterparty risk. We won’t have ’08-’09 with Bitcoin” pic.twitter.com/jk9hR0Lsid

– Bladeditor (Bladitor) July 17, 2023

“With regional bank failures and equities imploding across the board, bitcoin skyrocketed from $19,000 to $30,000,” Wood said. In Wood’s view, this rally signals an “escape to safety” among investors that “everyone” will eventually want.

Bitcoin as insurance

For example, Wood said that bitcoin insures against both direct and indirect expropriation of wealth. Whereas direct expropriation means the theft of assets by force, indirect expropriation is inflation – the devaluation of the national currency, especially one whose supply has been astronomically inflated through money printing.

Bitcoin supply is programmatically set at 21 million units, which makes inflation of this pattern impossible. However, even in a deflationary environment for securities, Wood said bitcoin acts as a hedge against counterparty risk.

“We’re not going to have ’08 ’09 with Bitcoin,” she said. “Everything is decentralized and transparent.”

Wood isn’t the only billionaire with a hyper-bullish long-term thesis regarding bitcoin. Michael Saylor, CEO of MicroStrategy, has predicted that Bitcoin’s market cap will rise to $100 million – which would mean BTC’s price of $4.7 million per coin.

Other bulls are confident that bitcoin will perform strongly over the next 18 months. This year, Rich Dad Poor Dad author Robert Kiyosaki and Standard Chartered Bank are calling for $120,000 per coin to be paid out by 2025.