Bitcoin
How Much Invested $1,000 Could Be Worth By 2030
Cathie Wood Raises Her Bitcoin Prediction by $2.3 Million: What $1,000 Invested Could Be Worth by 2030
Ark Invest CEO Cathie Wood is known for making bizarre predictions about cryptocurrencies.
The predictions, which would result in small amounts of money valuing into millions of dollars, are unlikely to come true, but are still interesting to consider.
Wood spoke at an investor event in New York in March, noting that the price of Bitcoin could reach $3.8 million by 2030.
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“Last year, we presented our case for Bitcoin. It was for $1.5 million. With this institutional green light that the SEC [Securities 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 said.
According to Wood, Bitcoin could reach $3.8 million if institutional investors started investing heavily in it. While the analysis is likely correct, it is unlikely that institutions will place 5% of their portfolios in Bitcoin within six years. Most institutions do not invest in Bitcoin, much less 5% of their portfolio.
However, institutional investment is growing, especially due to the approval of spot exchange-traded funds (ETFs) in January. This resulted in the most successful ETF launch in history, attracting tens of billions in investments. While ETFs have allowed institutions to access Bitcoin, Wood is likely overzealous about the level of institutional adoption by 2030.
Wood also highlighted the importance of the Bitcoin halving, which took place in mid-April, as another catalyst for the price. The halving did not result in any price increases in the short term. However, it could lead to new highs, especially if the Bitcoin cycle hypothesis holds. Wood’s prediction would also include the next halving, expected to occur in 2028. While halvings could serve as price catalysts, they are unlikely to take Bitcoin to the predicted $3.8 million.
Wood has a strong conflict of interest with his Bitcoin projections, as Ark launched its own Bitcoin ETF in January. By getting investors excited about Bitcoin’s future, it could attract more flows into its ETF.
If Wood is correct and Bitcoin reaches $3.8 million by 2030, a $1,000 investment would be worth more than $60,000. This would result in a compound annual growth rate (CAGR) in excess of 100%.
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This article Cathie Wood Raises Her Bitcoin Prediction by $2.3 Million: What $1,000 Invested Could Be Worth by 2030 originally appeared in Benzinga. with
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