Ark Funds CEO Cathie Wood has been known to make some highly criticized forward-looking predictions. Wood and her colleagues have some of the higher price targets on Wall Street for Bitcoin
Here’s a look at how much an investment could be worth in the future if their price targets are hit.
What Happened: “We are very optimistic about Bitcoin in particular,” Wood said last year, giving the crypto a price target of $400,000.
The bull case comes from more institutional interest in buying Bitcoin. Wood highlighted companies like Tesla Inc
, Block Inc
and MicroStrategy Inc
that have added Bitcoin to their balance sheets.
“What’s the reason not to diversify?” Wood asked. If all corporations put 1% to 10% of their cash balance into Bitcoin, the valuation of the coin could rise significantly and could increase the price target further for the coin.
Later in 2021, Wood and Ark Funds started discussing a $500,000 price target for Bitcoin over the next five years. Ark analyst Yassine Elmandjra wrote in a report that Bitcoin’s market capitalization could increase 25-fold in the next decade to $28.5 trillion.
The call for the gain along with gaining share versus gold helps highlight a $1 million price target by 2030 from Ark Funds.