ARK Invest maintains $1M Bitcoin forecast by 2030
In spite of a severe market downturn, decentralised digital assets continue to foster slow and steady revolutions; one being Bitcoin, per ARK Invest’s 2023 “Big Ideas” research report.
In the eyes of Ark Invest, Bitcoin is forecast to close the decade at $1 million because its fundamentals are exceptional – despite a turbulent 2022.
Ark writes: “Contagion caused by centralized counterparties has elevated Bitcoin’s value propositions: decentralization, auditability and transparency. Its network fundamentals have strengthened and its holder base has become more long-term focused.”
The investment firm backs up its claims by pointing to an increasing hashrate, long-term holder supply and addresses with a non-zero balance compared to previous drawdowns.
(ARK Invest “Big Ideas 2023” report)
Due to its fundamentally sound attributes, bitcoin continues to outperform traditional asset classes, per ARK.
The firm quotes a number of market figures to bolster its million-dollar bitcoin thesis. On a five-year CAGR basis, bitcoin is up an average of 272%. At the same time, global equities are up by 6.1%, global debt provided a yield of 1.4% and gold is up by 2.2%.
(ARK Invest “Big Ideas 2023” report)
This is not the first time that ARK CEO Cathie Wood has made such bold predictions on the asset’s trajectory. In May 2021, Wood made a bold prediction during an interview on Bloomberg, forecasting a $500,000 Bitcoin by 2026. In early 2022, she upped her prediction to $1 million by 2030.
ARK has also been interested in Coinbase’s stock (COIN). Throughout December and January, the firm grew its COIN position by purchasing around $30 million shares.
COIN is up 74% over a month, outperforming the likes of bitcoin.
While the investment firm is known for its strong opinions on bitcoin, the repot also touched on smart contracts and decentralised finance.
“As the value of tokenized financial assets grows on-chain, decentralized applications and the smart contract networks that power them could generate $450 billion in annual revenue and reach $5.3 trillion in market value by 2030,” according to the Ark report.
ARK’s Innovation ETF (ARKK) is up 31% on a monthly timeframe.
