Ark Invest CEO Cathie Wood believes that Bitcoin (BTC) price could reach $1.5 million by 2030 under a “bull case” scenario.
Wood made the comments during a CNBC interview on Jan. 11, which marked the first trading day for spot Bitcoin ETFs after they were approved by the SEC on Jan. 10.
The approval of the Bitcoin ETF spot, which is a financial product that allows investors to buy shares representing the digital currency, is seen as an important step towards mainstream Bitcoin adoption.
ETF INCREASES THE PROBABILITY OF A BULL CASE
Wood said that the SEC's green light further strengthens the bullish case for Bitcoin as it is an important step towards mainstream adoption of the digital asset.
She also gave a more conservative estimate of Bitcoin's future value with a base price target of around $600,000 by 2030. This equates to a market capitalization of more than $10 trillion.
The leading cryptocurrency's market capitalization is currently below $1 trillion, and backers expect it to grow tenfold over the next decade to match gold's $12 trillion market capitalization under the most conservative scenario.
On the other hand, Bitcoin's market capitalization would have to increase to $21 trillion for one BTC to be worth $1 million and around $31 trillion for a $1.5 million price target.
BITCOIN IS A SAFE HAVEN
Wood said her faith in Bitcoin stems primarily from its role as a hedge against direct and indirect forms of asset confiscation. She highlighted Bitcoin's response to the recent US banking crisis as a key indicator of its strength and resilience.
During this period, Bitcoin experienced a notable price increase from $19,000 to $30,000, which Wood interpreted as a clear sign of investor confidence in Bitcoin as a safe-haven asset.
Wood also pointed to Bitcoin's fixed supply as a key factor in its protection against inflation, a characteristic that makes it a unique asset in the financial world.
Wood's views are echoed by most industry experts, who have made similar predictions about Bitcoin's value. Tom Lee recently said he expects Bitcoin to reach $500,000 in the coming years, while Arthur Hayes believes we are heading towards a target of $1 million per BTC this cycle.