By
Godfrey Benjamin
April 29th, 2024
Ark Invest CEO Cathie Wood has reiterated her prediction for the price of Bitcoin to hit the $1.5 million target.
In a recent podcast interview, Ark Invest CEO Cathie Wood reaffirmed her previous bullish stance on Bitcoin (BTC) seeing a price value of $1.5 million. Cathie Wood discusses the macro position on why individuals purchase Bitcoin and how innovation generates returns for traders.
Wood’s Bitcoin Bullish Forecast
One key factor raised by Wood that has helped propel Bitcoin’s price recently is the growing institutional interests fueled by the launch of Exchange-Traded Funds (ETFs) in the United States. She emphasized that many individuals are now becoming aware of what Bitcoin represents courtesy of the ETF launch.
Despite macroeconomic factors such as interest rates threatening the global economy, Wood stated that Ark Invest sees Bitcoin as a risk-on and risk-off asset. According to the CEO, Bitcoin has consistently inched up in the past whenever the fear of a debt crisis looms. She cited the bank implosion which led to the collapse of Silicon Valley Bank last year as an example, noting that Bitcoin more than doubled at the time.
When asked about Ark’s strategy for Bitcoin investment, Cathie Wood stated that Coinbase Global Inc (NASDAQ: COIN), Robinhood Markets Inc (NASDAQ: HOOD), and Block Inc (NYSE: SQ) are a big part of the company’s portfolio. Beyond these companies, the CEO stated the company has launched some futures funds, three of which are actively managed.
Speaking on the influence of the upcoming halving event on Bitcoin’s price, Wood noted that the limited supply of Bitcoin would potentially cause the same dynamic similar to previous cycles. She, however, cautioned that it may take quite a while after the event for Bitcoin to see an astronomical increase in its price.
Notably, Wood is not the first to have forecasted Bitcoin’s price reaching the $1 million mark. In December, Perianne Boring, founder and CEO of the Chamber of Digital Commerce predicted that Bitcoin’s price would skyrocket to $1,000,000 by 2029. Boring’s bullish prediction on Bitcoin hinges on the premise that about 40% of US households own some type of crypto. Her ambition for the $1 million target is to increase adoption to an aggressive 90% by 2029.
At the time of writing, Bitcoin is trading at $66,227, reflecting an increase of 0.52% in the past 24 hours. Whilst the market capitalization increased by 0.5% to $1.3 trillion, the trading volume reduced substantially by 31.8% to $29 billion.
How Ark is Fairing in the Spot Bitcoin ETF Market
The Cathie Wood Bitcoin price target comes in the wake of the weekly drawdown in the price of the asset overall. On Wednesday, ARK 21Shares Bitcoin ETF (ARKB) recorded outflows of $87.5 million, exceeding Grayscale’s Bitcoin Trust (GBTC) by about 1,300 BTC. This was the fund’s second day of losses in a row as it lost $300,000 in assets the day prior.
Despite these losses, ARKB is among the big leagues in newly launched spot Bitcoin ETF offerings, with $2.2 billion in its recorded Assets Under Management (AUM) with a total Bitcoin holdings coming in at 44,662 BTC.