Bitcoin Price Reaches US$1.5 Million, Is It Possible?
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One of crypto's biggest optimists: The entire coin is poised for a massive comeback. At least, that is the hope of HODLers and traders in their crypto asset storage ambitions.
After being hit by the crypto winter in mid to late 2022, it turns out that there are still many crypto asset holders, especially Bitcoin (BTC) who are not selling. This time, HODLer is back to get a breath of fresh air.
Cathie Wood, Management of ARK Investments, which is a company with a record of buying crypto and periodic crypto company stocks, is betting on Bitcoin's imminent rise to new highs. Right now, all investors need is a little patience and faith.
In this case, Wood predicts Bitcoin will bounce back from current lows to eventually be worth US$1.48 million by 2030. This was stated in a new report this week, regarding a bullish scenario that would see Bitcoin's value increase by more than 6,300 % in just seven years.
Bitcoin is currently at a level of around US$23,800, far from an all-time high that nearly hit US$70,000 in November 2021. Cathie Wood admits to being very optimistic about the Bitcoin opportunity. Back in 2021, Wood predicted that Bitcoin could reach US$ 500,000 by 2026, if institutional investors and banks enter the crypto industry.
However, when inflation rose last year and enthusiasm for speculative assets including cryptocurrencies dwindled, crypto winter began and coins fell in value.
In the year following its November 2021 peak, cryptocurrencies are known to have slashed more than US$2 trillion in value, with Bitcoin in particular down 65% since then. Many of the crypto companies have experienced turmoil, such as Coinbase and Genesis, to the depreciation of BTC due to the collapse of FTX.
Even so, Wood has held true to their big Bitcoin bet. Even during the FTX crash, ARK research director Frank Downing, said the company's faith in the blockchain technology that underlies Bitcoin only increased after the crash.
Over the next seven years, ARK expects Bitcoin to become a multi-trillion dollar market, due to its strong fundamentals. Based on its latest report, the company expects crypto assets to outperform every major asset class over a longer period of time.
The sector's recent difficulties may even help restore confidence in Bitcoin in the long term, as exchange companies become more transparent with their finances to avoid a similar fate that befell FTX.
The same holds true for institutional investors like BlackRock and Fidelity, who have not wavered in their commitment to Bitcoin despite the market downturn. Even in the ARK “bear case” scenario, the value of Bitcoin is expected to rise to a record US$258,500 in 2030.
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