Bitcoin
Here’s How Much Just $100 in Bitcoin Will Be Worth If Cathie Wood’s BTC Prediction Is Correct
Here’s How Much Just $100 in Bitcoin Will Be Worth If Cathie Wood’s BTC Prediction Is Correct
Founded in 2014, ARK Invest has quickly become one of the largest asset management companies in the world. Led by Cathie Wood, the company offers a range of investment products and services, with a strong focus on innovation and technology. In early 2024, the company partnered with 21Shares to launch a spot Bitcoin ETF (ARKB). The ETF and several others have had great success, attracting over $3.2 billion in AUM.
Following the launch of the ETF, Cathie Wood received significant attention for her predictions about the future price of Bitcoin.
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“With this institutional green light that the SEC [Security and Exchange Commission] provided, despite kicking and screaming, the analysis we’ve done is that if institutional investors allocated just over 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”, Wood noted at an investor day conference in New York.
The new forecast is higher than at the beginning of the year. In January 2024, Wood stated that Bitcoin could reach $1.5 million in 2030 after “the upside probability has increased with this SEC approval. This is a green light.” Before approving spot ETFs, Wood predicted that Bitcoin could reach $1 million by 2030.
Wood’s investment thesis on Bitcoin depends on significant levels of institutional adoption. While it is plausible that if institutional investors allocate 5% of their portfolios to Bitcoin, the price could reach $3.8 million, this is unlikely to happen until 2030. Although institutional adoption has increased significantly by 2024, changes would be needed unprecedented in the institutional scenario. for this to happen.
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The 2030 forecast also takes into account the next Bitcoin halving, which is expected to occur in 2028. Historically, Bitcoin halvings precede higher highs, followed by higher lows. If this pattern continues into 2030, the price could peak around 2029 or 2030, potentially aligning with Wood’s price prediction.
If Wood is correct and Bitcoin reaches $3.8 million, a $100 investment in Bitcoin today would be worth $5,510 in 2030. This translates to a compound annual growth rate (CAGR) of over 95%.
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While the forecast is optimistic, Bitcoin’s 14-year CAGR is well above 220%, so it’s not entirely out of the question. However, as Wood noted, it would likely require substantial institutional investment.
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This article Here’s How Much Just $100 in Bitcoin Will Be Worth If Cathie Wood’s BTC Prediction Is Correct originally appeared in Benzinga.com
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