Bitcoin to Reach $1,000,000 Mark by 2023, According to Ark Invest Analyst
Last year, Cathie Wood predicted that Bitcoin would trade at $500,000 by 2026.
Earlier this year, Ark Investment Management, a firm led by Cathie Wood predicted Bitcoin to trade above $1 million by 2030 because its adoption is still in the early stage. In a recent statement, the firm’s analyst Yassine Elmandjra has reinstated his prediction and is not backing down despite the market pullback. Recently, Cathie Wood disclosed that the massive correction in the market is not enough to stop their innovation-themed ETF that has been crypto-pro. The reason for the year’s mass sell-off is due to the tight monetary policy imposed by the Federal Reserve.
“To the million: @ARKInvest analyst Yassine Elmandjra is standing by his firm’s prediction that #Bitcoin’s price will shoot past the million-dollar mark. What do you think? ” according to Bloomberg’s Beth Williams Liou.
Comparing the Bitcoin market to gold, Elmandjra mentioned that despite its bear-dominating market, there is still a sizable opportunity to be found. Per analysis, the market could recover at the end of the monetary policy tightening cycle. This means there would be another bull run in the middle of the decade. According to him, the market could hit 28-trillion-dollar when all the use cases are stacked on top of one another.
In his previous prediction, Elmandjra stated that the current capitalization is just a fraction of global assets.
“Bitcoin’s market capitalization still represents a fraction of global assets and is likely to scale as nation-states adopt [it] as legal tender,” Elmandjra wrote in “Big Ideas 2022”.
This sounds possible as Bitcoin is taking market shares as a global settlement network, according to Ark Invest research. In 2021, its cumulative trading volume increased by 463% and its annual settlement volume surpassed that of Visa’s annual payments volume.
Last year, Cathie Wood predicted that Bitcoin would trade at $500,000 by 2026 when asked about the expected worth of the asset in five years.
“If we are right and companies continue to diversify their cash into something like bitcoin, institutional investors start allocating 5% of their funds into … bitcoin, or other cryptos. We believe that the price will be tenfold of where it is today, so instead of $45,000, [it would be] over $500,000,” she said.