Bitcoin reaches $1 million due to historic changes and improvements
- ARK Invest’s CEO remains bullish on his Bitcoin prediction, insisting that BTC will trade at $1 million by 2030.
- Wood claims that institutional investors remain interested in the leading digital asset despite being 70 percent off its peak price.
CEO and founder of ARK Invest, an investment management company, Cathie Wood has maintained her prediction on the price of the premier digital asset, BTC. In a recent Bloomberg interview, Wood confirmed that ARK Invest is still sticking to the forecast that BTC will trade at $1 million.
Wood expects the BTC price to reach $1 million within the next decade. If that happens, BTC’s price would rise by 4,300 percent from today’s price. Current on-chain data shows BTC changing hands at $20,822.
Institutional Investors’ Bitcoin Adoption
The ARK Invest CEO also spoke about institutional investors’ use of Bitcoin. Wood argued that this group of investors has become more interested in having BTC in their investment portfolio as the price is relatively low right now. BTC’s price is almost 70 percent lower than its peak in November 2021.
Institutions seem to be making their moves. They see the current price level of $20,000 as an investment opportunity, after seeing it trade at $70,000.
Wood further claimed that institutions became more interested in Bitcoin after a 2018 report by Cambridge Associates.
Related: To the moon! Cathie Wood’s ARK Invest Says Bitcoin Will Surpass $1M By 2030 As BTC Approaches $38K
Cambridge Associates is an institutional investor advisory firm based in Boston, Massachusetts. Wood said Cambridge Associates asked its clients four years ago to invest in Bitcoin since it is a new asset class. The consultancy added that Bitcoin may seem like a Ponzi scheme, but it is not. That advice piqued the interest of the institutional investment managers for BTC.
Wood said institutional investors are not known to miss out on a new asset class. According to the ARK Invest CEO, “such assets help them diversify their portfolio because there is almost no correlation between returns, and Bitcoin exhibits these characteristics.” At this point, BTC is up 2.26 percent and is trading at $20,792.
Cathie Wood’s BTC Investment Story
The ARK Invest CEO said she bought $100,000 worth of BTC at $250 per BTC. She also said that she has never sold her BTC holdings either during bear or bull season. If the facts above are correct, Wood’s BTC purchase would be worth $8.2 million at the current BTC price.
It also means her BTC portfolio was worth $27.6 million when the leading digital asset traded at $69,044 last November. If BTC were to trade for $100,000 in the next few years and Wood continues to hold, her BTC investment will be worth $400 million by then.
Wood’s bullish stance on the BTC price is on the basis that at least 5 percent of institutional investors will invest in BTC by 2030. Wood claims that BTC’s price will reach the $500,000 mark if that happens.
