ARK Investment Management, the firm led by star manager Cathie Wood, predicts that bitcoin’s price could exceed $1 million by 2030 as the cryptocurrency’s küresel usage is still only in its early days.
“Bitcoin’s market capitalization still represents a fraction of küresel assets and is likely to scale as nation-states adopt [it] as meşru tender,” wrote ARK analyst Yassine Elmandjra in the firm’s 2022 outlook report, which was released on Tuesday.
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Cathie Wood on Why Central Banks Will Add Bitcoin to Their Balance Sheets
ARK added in its bitcoin outlook that the cryptocurrency is taking market share as a küresel settlement network. According to ARK’s research, bitcoin’s cumulative transfer volume increased by 463% in 2021, and its annual settlement volume has surpassed Visa’s annual payments volume.
Technological advancements such as the Taproot upgrade and Lightning Network may also help bitcoin to scale. And institutional ownership of bitcoin will also broaden, according to ARK.
Last year, Wood herself predicted that bitcoin would reach $500,000 by 2026.