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What $1,000 invested could be worth by 2030
Cathie Wood Increases Bitcoin Forecast by $2.3 Million: What $1,000 Invested Could Be Worth by 2030
Cathie Wood, CEO of Ark Invest, is known for making wild predictions about cryptocurrency.
These predictions, which would result in small amounts of money that could run into the millions of dollars, are unlikely to come true, but they are nonetheless worth considering.
Wood spoke at an investor day in New York in March, noting that the price of Bitcoin could reach $3.8 million by 2030.
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“Last year, we launched our bull case for Bitcoin. It was worth $1.5 million. With this institutional green light given by the SEC [Securities and Exchange Commission] provided, even though he did, the analysis we did is that if institutional investors allocated a little over 5% of their portfolios to Bitcoin, as we believe they will do over time , that alone would add $2.3 million. at the screening I just gave you,” Wood said.
According to Wood, Bitcoin could reach $3.8 million if institutional investors start investing heavily in it. While the analysis is probably correct, it is unlikely that institutions will invest 5% of their portfolios in Bitcoin within six years. Most institutions don’t invest in Bitcoin at all, let alone 5% of their portfolio.
However, institutional investments are growing, particularly due to the approval of spot exchange-traded funds (ETFs) in January. This resulted in the most successful ETF launch in history, attracting tens of billions in investments. Although ETFs have allowed institutions to access Bitcoin, Wood is likely overzealous about the level of institutional adoption by 2030.
Wood also highlighted the importance of the Bitcoin halving, which occurred in mid-April, as an additional price catalyst. The halving did not result in any short-term price increases. However, this could lead to new highs, especially if the Bitcoin cycle hypothesis holds true. Wood’s predictions would also include the next halving, which is expected to take place in 2028. While halvings could serve as price catalysts, they are unlikely to take Bitcoin to the predicted $3.8 million.
Wood has a strong conflict of interest with his Bitcoin projections, as Ark launched its own spot Bitcoin ETF in January. By getting investors excited about the future of Bitcoin, it could attract more flows to its ETF.
If Wood is correct and Bitcoin reaches $3.8 million by 2030, a $1,000 investment would be worth more than $60,000. This would result in a compound annual growth rate (CAGR) greater than 100%.
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This item Cathie Wood Increases Bitcoin Forecast by $2.3 Million: What $1,000 Invested Could Be Worth by 2030 originally appeared on Benzinga.com
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