ARK Invest CEO Cathie Wood predicts Bitcoin's value will soar towards $3.8 million on the “financial superhighway.”
“If institutional investors allocate a little more than 5% of their portfolios to Bitcoin, which I think they will do over time, that alone would add 230% to the prediction I made earlier,” Wood said at the Bitcoin Investors Day conference on Friday. “That's an additional $1,000,” he said. In New York.
Wood predicted in January that Bitcoin could reach $1.5 million by 2030.
The cryptocurrency has gained 45% since the beginning of the year and is currently trading at around $64,844.
Additionally, Wood said the U.S. Securities and Exchange Commission's reluctance to allow institutional investors into Bitcoin could push up prices.
Recall how Ark Invest was among 11 companies, including BlackRock and Fidelity, to receive SEC approval for a Spot Bitcoin ETF earlier this year.
The introduction of these products has increased demand, shattered previous records for inflows into US ETFs, and sparked renewed interest in the Bitcoin that these funds directly invest in and hold.
Several industry experts echo Wood's position that the Bitcoin halving event scheduled for April will cause a supply shock. As such, reduced supply will support the current demand-driven rally.
Wood believes the impending halving will have a similar impact to previous halvings in 2012, 2016, and 2020, which led to significant price increases for Bitcoin.
He further reminded the audience that we are in the early stages of developing an internet-based financial ecosystem that will eliminate many intermediate costs.
Wood's comments confirm her prediction in January that Bitcoin could reach $1.5 million by 2030. She sees these trends as important for widespread adoption of Bitcoin.
Regarding Bitcoin's growing importance in emerging economies like Nigeria, Wood expects it to act as both a hedge against economic fluctuations and a promising investment.
