With Bitcoin (BTC 0.20%) turning in its best January performance since 2013, it’s no surprise that analysts are ratcheting up their price targets for this suddenly hot crypto. Bitcoin was up nearly 40% in January, and that has led to a completely revised outlook for just how high this crypto could fly in coming years. Cathie Wood of Ark Invest — known for her previously controversial $1 million price target for Bitcoin — has just ratcheted up her Bitcoin price prediction. She now thinks Bitcoin could skyrocket to $1.48 million by 2030.
ARK forecasted Bitcoin to bounce back from its current lows to eventually be worth $1.48 million by 2030 in a new report published this week, a bullish scenario that would see Bitcoin’s value rising by more than 6,300% in just seven years.
Bitcoin is currently trading at around $23,000, a far cry from its all-time high of nearly $70,000 achieved in November 2021. Those were good times for crypto bulls, when up to a quarter of holders were convinced that Bitcoin could exceed $100,000 in fewer than five years. Cathie Wood was exceptionally upbeat about Bitcoin’s chances, even predicting in 2021 that it could hit $500,000 by 2026 if institutional investors and investment banks began piling in.
That was also peak crypto, as it turns out. As inflation rose last year and enthusiasm for speculative assets including cryptocurrencies dwindled, the Crypto Winter began and coins tumbled in value.
But through it all, CEO Cathie Wood and her firm, ARK, have held onto their big Bitcoin bet. Even during the FTX implosion later last year, ARK research director Frank Downing said the firm’s conviction in Bitcoin’s underlying blockchain technology had “only increased” in the wake of the crash. In December, Wood tweeted that the Bitcoin blockchain “didn’t skip a beat” during the FTX debacle, which she took to signify the coin’s transparency and resilience during downtimes.
Over the next 7 years, Cathie Wood’s ARK expects bitcoin to become a “multitrillion-dollar market” because of its strong fundamentals, according to the new report, as the firm expects the crypto asset to outperform “every major asset class over longer time horizons.” The sector’s recent difficulties may even help restore trust in Bitcoin in the long term as exchange companies become more transparent with their finances to avoid a similar fate that befell FTX, ARK argued.
Even institutional investors, including BlackRock and Fidelity, have not wavered on their commitment to Bitcoin despite the market downturn, the report also found, reinforcing the coin’s fundamentals.
