Cathie Wood’s ARK analysts predict Bitcoin at $1 million each by 2030

Posted: 26 January 2022 3:37 pm
BitcoinCurrencyIcon_GettyImages_1800x1000 (1)

Five major factors contribute to the continued bull run of Bitcoin, ARK says, including growing adoption and long-term focus of investors.

Bitcoin’s market cap could grow to $28.5 trillion in 2030 from $720 billion today, predicts ARK Invest, the firm led by Cathie Wood.

“According to our research, Bitcoin’s market capitalization could scale more than 25-fold in the next decade, with each exceeding $1 million in value,” wrote ARK analyst Yassine Elmandjra, in the firm’s just-released “Big Ideas 2022” outlook report.

That would make today’s price – about $38,000 each – a definite buying opportunity.

Why it could happen

“Our research suggests that Bitcoin has the potential to transform monetary history by providing financial freedom and empowerment in a fair, global and distributed way,” Elmandjra wrote. The report lists five reasons for this bold prediction.

1. Market participants are focused on the long-term

Bitcoin’s (BTC) long-term holders aren’t selling. Despite reaching a record high price in November 2021 and then falling sharply, on-chain data shows that Bitcoin holders are focused on the long-term potential.

Long-term investors hold 13.5 million BTC. That’s more than 70% of the currently available Bitcoin supply.

2. Bitcoin is taking a larger market share

“Bitcoin’s cumulative transfer volume increased by 463% in 2021. Bitcoin’s annual settlement volume has surpassed Visa’s payments volume,” Elmandjra wrote. The transaction volume grew from $2.3 trillion in 2020 to $13.1 trillion in 2021.

3. Bitcoin continues to scale

Bitcoin activated Taproot in November 2021. This is a base-layer protocol upgrade designed to increase the privacy and efficiency of Bitcoin transactions.

Another upgrade was the Lightning Network (LN). This is a layer-2 payment protocol built on Bitcoin. LN’s goal is to enable fast transactions and has been proposed as a solution to the bitcoin scalability problem.

4. Wider adoption

Exchange-traded products, countries and corporations held 8% of Bitcoin’s supply as of November 2021. The total value of this was $89 billion in November, with the largest noncustodian holder Grayscale Bitcoin Trust with 654,200 Bitcoin.

Companies weren’t the only entities to hold Bitcoin. El Salvador was the first country to accept Bitcoin as a legal tender in 2021. There are more crypto wallets in the country than traditional bank accounts.

5. Bitcoin mining has evolved

Bitcoin miners generated revenue of $16.7 billion in 2021. ARK’s analysts see Bitcoin mining as an incentive to discover cost-efficient energy sources, independent of location and consumer demand.

For example, El Salvador announced it will start mining Bitcoin with energy from volcanic activity. “Mining will encourage and generate more electricity from renewable carbon-free sources,” said the report.

Bitcoin is beaten down. So are ARKs investment funds

It’s worth nothing that both Bitcoin and Wood have struggled lately.

After reaching a record high in November 2021, Bitcoin has lost almost half of its value. ARK’s funds have also performed poorly. Its flagship fund Ark Innovation ETF (ARKK) is down more than 50% since February 2021.

But ARKK gained 228% in the past years even with a poor 2021, and Wood has stood behind its strategy of investing in cutting-edge tech stocks. Of course, whether the Bitcoin prediction happens remains to be seen.

Kliment Dukovski owns Bitcoin as of the publishing date.

Paid non-client promotion. Finder does not invest money with providers on this page. If a brand is a referral partner, we're paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Learn more about how we make money.

Finder is not an adviser or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.

Ask an Expert provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site