Cathie Wood says the price of bitcoin could head to $3.8 million.
Cathie Wood, founder of Ark Invest, stated in an interview with former moderator Anthony Pompliano that her outlook on Bitcoin has significantly improved in recent months due to a surge in institutional adoption and the introduction of new ETF products.
In January, Ark Invest shared a Bitcoin outlook predicting the token could reach $1.5 million by 2030. Bitcoin has risen by 44% year-to-date and was trading around $63,768 on Friday.
"Last year, we projected a bullish scenario for Bitcoin at $1.5 million. With the recent institutional acceptance, albeit reluctantly from the SEC, our analysis indicates that if institutional investors were to allocate slightly over 5% of their portfolios to Bitcoin, as we anticipate over time, this alone would add $2.3 million to our projection."
Ark was among 11 firms, including BlackRock and Fidelity, that received SEC approval for spot Bitcoin ETFs earlier this year. Since the introduction of these products, demand has surged, setting all-time records for inflows into US ETFs and boosting demand for the cryptocurrency itself, which the funds directly invest in and hold.
Industry experts also predict that the upcoming Bitcoin halving event, expected in April, could lead to a supply shock, further fueling the current rally driven by demand.
Wood stated at the Reflexivity Research-hosted conference that she anticipates the upcoming halving to have a similar impact as previous events. Following the halvings in 2012, 2016, and 2020, the price of Bitcoin surged by 8,069%, 284%, and 559%, respectively.
"We believe Bitcoin has a long way to go. We are just starting to establish the financial ecosystem native to the internet and to disintermediate all intermediaries," Wood concluded.
