The price of Bitcoin BTC/USD has rallied in 2023, making it one of the best-performing assets so far this year. Bitcoin crossed the $30,000 mark on Monday for the first time since June 2022. Ark Invest CEO Cathie Wood is among the financial experts who see more upside coming for the leading cryptocurrency.
Here’s a look at how Wood’s price prediction could pay off for investors.
What Happened: Over the years, Wood has been a strong believer in Bitcoin and has supported progressively rising price targets.
Price targets of $400,000 and $500,000 were eventually raised to $1 million, a target price by the year 2030 that Wood has backed multiple times.
Wood said the price of Bitcoin could rise if corporations put 1% to 10% of their cash balance into Bitcoin, a comment that came after Tesla, Square and other companies added the leading cryptocurrency to their balance sheets.
“We are very optimistic about Bitcoin in particular,” Wood told Benzinga in an interview.
Bitcoin hit an all-time high of $68,789.63 in November 2021 and saw a decline in its price in 2022 after the bankruptcy and collapse of several major cryptocurrency companies.
Despite setbacks in the cryptocurrency sector, Wood has remained positive on the sector in recent interviews.
“Sometimes you need to battle test, go through crises, to see the real survivors,” Wood said told Bloomberg.
In an interview with Yahoo Finance, Wood highlighted Bitcoin as a safety net for investors.
“Hyperinflation all over the world as their currencies have fallen apart, those populations need a fallback – an insurance policy like Bitcoin,” Wood said.
In its latest Big Ideas report, Ark Invest laid out several price targets for Bitcoin. The research report put together by Ark Invest sees Bitcoin hitting price targets in 2030 of $258,500 in the bearish forecast, $682,000 in the average market and $1.48 million in a bullish market.
Wood and Ark Funds remain bullish on Bitcoin and have increased their holdings in many ETFs to coincide with this thesis.
Coinbase Global COIN, a leading cryptocurrency exchange, is the top holding of the Ark Next Generation Internet ETF ARKW and the Ark Fintech Innovation ETF ARKF, and is the fourth-largest holding of the Ark Innovation ETF ARKK.
The Grayscale Bitcoin Trust GBTC is the third-largest holding of the Ark Next Generation Internet ETF.
Related Link: How To Buy Bitcoin
Investing $100 in Bitcoin: Here’s a look at how much an investment in Bitcoin today would be worth under various price targets from Wood and Ark Invest.
A $100 investment today could buy 0.0033 BTC based on a price of $30,48.83 at the time of writing.
If Bitcoin hits $1 million as predicted by Wood several times, the $100 investment would be worth $3,300.
Here’s a look at the returns under the price targets from the Big Ideas report.
- Bear case, $258,500: $100 today would be worth $853.05.
- Base case, $682,000: $100 today would be worth $2,250.60.
- Bull case, $1.48 million: $100 today would be worth $4,884.
Photo: Benzinga on YouTube and an image generated with artificial intelligence on MidJourney.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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