ARK Invest’s Cathie Wood predicts that it won’t be long before Bitcoin hits $1 million. In a new interview with Bloomberg, Wood says she is confident her prediction will come true for Bitcoin around the year 2030. In that respect, you have to be patient, but from current prices that would mean an increase of 3,500 percent.
On what does she base her prediction?
The flamboyant CEO of ARK Invest bases her forecast on the global economic climate. “The more uncertainty and volatility there is in the global economy, the more confidence in Bitcoin rises,” said Wood. In particular, the fact that there is a lot of fear of inflation at the moment works in favor of Bitcoin, she says.
In the face of inflation, the absolute scarcity of Bitcoin is of course an attractive alternative and Wood does not miss that either. Slowly but surely, she says, more and more people will adopt Bitcoin as their primary or secondary means of savings.
“We now believe the biggest risk is deflation and not inflation. Why would Bitcoin do well in those circumstances? That’s because Bitcoin is an antidote to the risks in the traditional financial system,” she continues.
She points, for example, to the inherent weakness that we currently see in a lot of banks. Think of the banking crisis that started in March 2023, as a result of which several American banks came to an end.
Not yet
At the moment, however, there is no extreme bullish climate for Bitcoin yet. The industry is under enormous pressure due to the problems at Binance, Coinbase and various projects that have suddenly been designated as effects by the US Securities and Exchange Commission (SEC).
Robinhood has already decided to delist some projects, including Solana, Polygon, and Cardano. That has given the prices of those coins a huge blow and there is a chance that more exchanges will follow Robinhood’s example.
For example, Bitcoin may soon be the only currency that does not qualify as a security. That would be bullish for Bitcoin, but not for the rest of the industry. On that note, it looks like this week is a huge win for Bitcoin maximalists, who claim that Bitcoin is the only serious coin.