Ark analyst stands by prediction Bitcoin price will top $1 million
(Bloomberg) — Ark Investment Management analyst Yassine Elmandjra is standing by his firm’s prediction that Bitcoin’s price will shoot past the million-dollar mark, despite this year’s massive selloff in the digital currency.
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Cathie Wood, the fund manager behind Ark’s flagship innovation-themed ETFs, predicted earlier this year that the world’s largest cryptocurrency would top $1 million per coin by 2030. Still, coin holders and miners have sold off the token en masse in 2022 as the Federal Reserve continues to tighten monetary policy aggressively, driving investors away from riskier asset classes, such as crypto.
The virtual watch currency is down nearly 60% to around $19,000 this year, according to Bloomberg data.
Still, Ark cryptoanalyst Elmandjra said there is still significant opportunity to be found in Bitcoin, in an interview with Bloomberg TV on Tuesday, and reiterated the firm’s view of every coin exceeding $1 million in the coming years.
“When we look at Bitcoin’s potential, we segment it across multiple use cases — everything from it competing as a digital store of value, to a settlement network, to insurance against arbitrary asset seizure,” he explained. “When you stack each use case on top of another, you arrive at an opportunity of about $28 trillion, which equates to more than a million dollars per Bitcoin.”
Still, the firm relinquished its spot as the third-largest shareholder in US-based crypto platform Coinbase Global Inc. over the summer, dumping some of its holdings amid a US Securities and Exchange Commission investigation. Three Ark Investment Management LLC funds sold over 1.41 million shares by the end of July, worth $75 million at the time.
Ark’s $7.1 billion Innovation ETF (ticker ARKK) hasn’t had a favorable year, hovering near its lowest close since March 2020 on Tuesday. The fund has plunged 62% in 2022 as global risk sentiment worsens, compared with a 24% drop in the S&P 500.
Elmandjra’s long-term view of Bitcoin remains bullish, however.
“When you look at Bitcoin as a strategic asset, non-sovereign, censorship-resistant money, competing against central banks and fiat currencies, the Bitcoin supply is limited to 21 million, I think it’s an arms race – especially as we shift from the digital to the physical world – to be an asset independent of the traditional financial systems and traditional asset classes,” he said in the TV interview.
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