In a striking update, ARK Investment's CEO Cathie Wood revises her Bitcoin forecast to a staggering $3.8 million by 2030, banking on major institutional investment shifts.
Explore what this means for the future of cryptocurrency in our full report.
ARK CEO's Bullish Bitcoin Price Prediction
Cathie Wood, the CEO of American asset management firm ARK Investment, has raised her forecast for the price of Bitcoin (BTC), suggesting that "BTC prices could rise to $3.8 million by 2030," according to a report by "BENGINGA."
Earlier in January this year, Wood had discussed her expectations for Bitcoin's price, stating that "under a base scenario, it could rise to $600,000 by 2030, and under a bullish scenario, it could go up to $1.5 million."
This prediction was based on the premise of "institutional investor entry." ARK Investment had previously released a report discussing the forecasted BTC price if global institutional investors were to allocate a part of their portfolios to Bitcoin as follows:
| Allocation to BTC (%) | BTC Price Forecast |
|---|---|
| 1% | $120,000 |
| 4.8% | $550,000 |
| 19.4% | $2,300,000 |
However, in March this year, during an investor briefing held in New York, Wood further elevated these predictions, stating that "if institutional investors were to allocate just over 5% of their portfolios to BTC, an additional $2.3 million would be added to the previous forecasts."
Last year we put out our bull case for Bitcoin. It was $1.5 million.
With this institutional green light that the SEC [Securities and Exchange Commission] has provided, kicking and screaming though it did, the analysis we’ve done is that if institutional investors were to allocate a little more than 5% of their portfolios to Bitcoin, as we think they will over time, that alone would add $2.3 million to the projection I just gave you
Expanding Movements in Bitcoin Investment
Despite the relatively small number of institutional investors currently incorporating Bitcoin into their portfolios, the possibility of "global institutional investors allocating 5% of their portfolios to Bitcoin becoming a reality is low," some opinions suggest.
However, there is a steadily increasing number of institutional investors putting their money into BTC, supporting this optimistic forecast.
Recently, representatives from BlackRock, the world's largest asset management company, have speculated about "government funds and pension funds entering into Bitcoin ETFs."
Should such government-related funds begin investing in BTC, it might prompt other asset management companies to follow suit.
On the 2nd of this month, Block, led by Jack Dorsey, announced a plan to "allocate 10% of the gross profits from Bitcoin-related products to purchase Bitcoin monthly."
Such significant investment strategies from major companies are also expected to contribute to the rising price of Bitcoin.
>> Click here to read the latest article on price projections.
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