Bitcoin’s price is trading just below $103,000 after falling 16% last month, and some of the market’s most optimistic views. tempering expectations.
Cathie Wood, CEO of ARK Invest, said: Bold predictions for Bitcoinsaid in an interview on CNBC’s Squawk Box that he has lowered his bullish Bitcoin price target by $300,000. Rapid Rise of Stablecoins As the main reason for adjustment.
Stablecoins will take over some of Bitcoin’s role
wood explained Stablecoins are fulfilling the function that she and her team originally believed Bitcoin would dominate: as a financial tool for emerging markets. She pointed out that stablecoins have become the preferred digital asset in many markets. According to her, this trend is growing much faster than anyone anticipated, leading ARK Invest to lower its long-term bullish forecast for Bitcoin by $300,000. This lowers Bitcoin’s forecast from $1.5 million to around $1.2 million by 2030.
Wood said the company’s model currently supports stablecoins. Scaling faster than expected. In her words, “stablecoins are expanding much faster than anyone else here,” and their growth is effectively taking away some of the market that Bitcoin was once expected to capture.
Money, institutions, and the big picture
Asked if gold was factored into the forecast, Wood explained that the $300,000 reduction was based on the assumption that gold would continue to grow, all else being equal.
However, since ARK Invest’s first Bitcoin prediction, gold has also doubled in value, making the comparison more nuanced. He reiterated that the investment case for Bitcoin remains as it is digital gold and a technological innovation that forms the basis of a global monetary system.
Wood noted that Bitcoin is “the mainstay of an emerging asset class,” distinguishing stablecoins as digital cash equivalents. The relationship between gold, stablecoins, and Bitcoin represents what she describes as a “put-and-take” dynamic interplay. Despite the downward revision to his price forecast, Wood emphasized that ARK is fundamentally bullish on Bitcoin’s long-term potential.
Even though ARK Invest is tempering expectations, Wood emphasized that institutional interest in Bitcoin and blockchain-based payment systems is still in its infancy. He noted that major financial institutions are still in the early stages of testing, and initial experiments with new payment rails and digital asset integration are beginning to take shape.
This is for wood Early stages of institutional involvement This is the first in a long runway for Bitcoin growth. Despite the current situation Short-term market weakness She also maintained belief in Bitcoin’s technological role as a leader in a new asset class, even in the face of competition from stablecoins.
“We are just getting started,” she said, adding that there was still “a long way to go.”
At the time of writing, Bitcoin is trading at $102,413, up 1% in the past 24 hours, but down 7% and 16% in the past 7 and 30 days, respectively.
Featured image from Unsplash, chart from TradingView
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