ARK Invest CEO Cathie Wood is no stranger to Bitcoin predictions given that the asset manager has previously said that BTC will go to $500,000 and even reach $1 million. As always, Wood remains steadfast in her Bitcoin predictions, coming out once more with an even more daring figure for the pioneer cryptocurrency.
Cathie Wood Says Bitcoin To $1 Million
Cathie Wood, who is the founder and CEO of ARK Invest, an investment firm with over $6 billion in assets under management (AUM) has come forward with a new price expectation for Bitcoin. The CEO had a chat with Natalie Brunell, hist of the “Coin Stories” podcast, where she made this new prediction.
As Wood explains, ARK Invest’s research team’s efforts have shown that Bitcoin’s growth will be largely driven by institutional adoption. They expect the digital asset to undergo a massive rally as the next decade begins.
Wood points to the adoption trend of new assets by these large institutional investors and how they often tend to allocate their portfolios. As the CEO points out, between 5% and 6% of institutional investors’ portfolios were allocated to assets such as real estate after the managers had tested the waters.
Bitcoin could be seen as being in the ‘testing the waters’ phase where institutional investors are still only putting around 1% into the digital asset to see how it turns out. Then gradually, they expand their allocation until they get to that 5% to 6% range. Now, when this happens, as Wood has pointed out before, BTC will cross the 7-figure mark.
BTC price fails to reclaim $28,500 | Source: BTCUSD on Tradingview.com
Wood tells Brunell that she wants the Bitcoin price to cross $1 million by 2030. But this doesn’t mean that the CEO does not expect the digital asset to grow further as she puts it as high as $1.48 million in the next seven years.
The ARK Invest founder further points out that some companies are already starting to exceed the conservative 1% allocation. “Tesla, Square have Bitcoin on the balance sheets. But we make very cautious assumptions and I think the corporate treasury assumption is 2.5% of all cash and cash equivalent in Bitcoin.”
Wood stated:
If we’re right and the purchasing power of Bitcoin becomes so obvious in the years ahead, meaning the purchasing power goes up, instead of cash [dollars] staying pretty flat, if not, in real terms, deteriorating, then more and more corporate treasuries are going to be putting Bitcoin on their balance sheets.
She believes analysts at these companies will ask companies to put money into BTC rather than leave it in cash where the value continues to decline.