Key Takeaways:
- Cathie Wood suggested on Friday that Bitcoin could experience an additional increase of $2.3 million to her previous target.
- In January, her firm had set a target of $1.5 million for Bitcoin.
- As of Friday, Bitcoin was trading around $63,768.
- Wood attributes the potential for this substantial price surge to a surge in institutional demand and higher portfolio allocations.
- She believes these factors could drive Bitcoin’s price even higher in the future.
Cathie Wood says the price of bitcoin could head to $3.8 million given the latest developments for the world’s largest cryptocurrency.
Speaking at the Bitcoin Investor Day conference in New York on Friday, Cathie Wood discussed the potential for Bitcoin’s price to surge even higher. During the event, moderated by Anthony Pompliano, Wood emphasized the impact of institutional adoption and the introduction of new ETF products on Bitcoin’s future trajectory. She suggested that her bullish outlook could see the token climb by over $2 million above her previous target.
Wood’s firm, Ark Invest, had shared a Bitcoin outlook in January, estimating that the cryptocurrency could reach $1.5 million by 2030. Notably, Bitcoin has already climbed 44% year-to-date and was trading around $63,768 on Friday.
Highlighting the significance of institutional participation, Wood explained that if institutional investors were to allocate just over 5% of their portfolios to Bitcoin, as she anticipates over time, it could potentially add $2.3 million to her projected target.
Ark Invest was among 11 firms, including BlackRock and Fidelity, that received approval from the SEC for spot Bitcoin ETFs earlier in the year. The introduction of these ETFs has spurred significant demand, leading to all-time records for inflows into US ETFs and driving demand for Bitcoin itself.
Moreover, industry veterans anticipate that the upcoming Bitcoin halving event, expected to occur in April, could trigger a supply shock, further fueling the ongoing rally driven by demand.
Wood expressed her expectation that the upcoming halving will have a similar effect as previous events. In the 12 months following the three previous halvings in 2012, 2016, and 2020, the price of Bitcoin surged by significant percentages.
Despite Bitcoin’s already impressive performance, Wood maintained her optimism, stating that she believes Bitcoin has immense potential ahead. She emphasized the ongoing development of the financial ecosystem native to the internet and the displacement of traditional intermediaries in financial transactions.