Ark Invest CEO Cathie Wood has laid out several price targets for Bitcoin BTC/USD including a bull case of $3.8 million if more companies add the cryptocurrency to their balance sheet. Benzinga readers see this price target as not likely to be reached by Wood's projection of 2030.
What Happened: Wood has shared several price targets for Bitcoin over the years, which might seem more realistic given that the leading cryptocurrency has hit multiple all-time highs since the 2024 presidential election.
Earlier this year, Wood laid out her price targets for Bitcoin based on a bear case, base case and bull case for the year 2030. Wood also added a new bull case that includes the highest price Bitcoin could potentially reach by 2030 if companies allocated 5% to Bitcoin.
- The price targets are:
- Bear Case: $258,500
- Base Case: $682,000
- Bull Case: $1,480,000
- Bullish Case: $3,800,000
Benzinga recently asked readers if they thought Wood's highest price target could be reached by the year 2030.
"Will Cathie Wood's Bitcoin price prediction of $3.8 million by 2030 come true?" Benzinga asked.
The results were:
- No, Bitcoin will never reach $3.8 million: 34%
- No, Bitcoin won't reach $3.8 million by 2030: 25%
- Bitcoin could reach $3.8 million, but not by 2030: 24%
- Yes, Bitcoin will reach $3.8 million by 2030: 17%
The poll found that only 17% of readers said that Bitcoin is likely to hit $3.8 million by 2030. The highest percentage of readers said Bitcoin will never reach the $3.4 million price target. The remaining readers see Bitcoin potentially hitting $3.8 million, but it will come after 2030.
Why It's Important: Part of Wood's thesis hinges on corporations adding Bitcoin to their balance sheet.
MicroStrategy Inc. MSTR is the most famous example of this. The software company continues to invest its profits in Bitcoin and borrow to continue investing in Bitcoin.
Other companies, such as Tesla Inc. and Block Inc., added Bitcoin to their balance sheets, but in lower quantities than MicroStrategy.
MicroStrategy Chairman Michael Saylor recently said he will be presenting to the Microsoft Corporation MSFT Board of Directors on why the tech giant should add Bitcoin to their balance sheet. The item was proposed to the company and could mark one of the largest companies to buy Bitcoin if the deal goes through.
Saylor also said he would advise Rumble Inc. RUM, whose CEO is considering buying Bitcoin.
There is also the potential that the new White House administration will advance calls to buy Bitcoin for a strategic reserve.
With a fixed maximum supply of 21 million Bitcoin, the demand from corporations and country governments to add BTC to reserves and balance sheets would likely spike the price, which was the key thesis of Wood's price target.
Wood recently reiterated her price targets in a CNBC interview, highlighting Ark Invest’s early investment in Bitcoin.
“We were the first public asset manager to gain exposure to Bitcoin in 2015 at $250,” Wood said.
Wood said that even with Bitcoin trading at around $90,000, the company believes there is a long way to go.
The fund manager said that getting regulatory relief with a new administration is one of the most important things for Bitcoin. Wood also sees Bitcoin being viewed as a new asset class, leading to more institutions and asset allocators wanting to invest in the top cryptocurrency.
Wood's Ark Invest was also one of several companies to have a Bitcoin ETF approved by the SEC with its Ark 21 Shares Bitcoin ETF ARKB.
BTC Price Action: Bitcoin trades at $98,617.47 at the time of writing and is up 123% year-to-date in 2024. A recent Benzinga poll found that 73% of readers believe Bitcoin will reach $100,000 by the end of 2024.
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The study was conducted by Benzinga from Nov. 14 through Nov. 15, 2024, and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 156 adults.
Image created using a photo from Ark Invest and Midjourney.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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