The CEO of investment management firm Ark Invest, Cathie Wood, has explained why her firm’s confidence in bitcoin’s price reaching $1.5 million has increased. Citing the crypto’s performance during the regional bank crisis earlier this year, she stressed, “That was the flight to safety,” emphasizing that bitcoin is the insurance her team believes “everyone will want at the end of the day.”
Ark Invest’s Bitcoin Price Predictions
Ark Investment Management (Ark Invest) is now more confident in bitcoin’s price reaching $1.5 million per coin. The firm’s CEO, Cathie Wood, said in an interview with Bloomberg Monday:
Our confidence has increased toward the bull case.
The bull case Wood referred to was one of the three scenarios Ark Invest outlined in its annual Big Ideas 2023 that was published in February. In the firm’s base case scenario, the price of bitcoin is projected to reach $682,800 by the end of December 2030, while the bull case scenario envisions BTC soaring to $1.48 million in the same time period.
Wood attributed the increased bullishness in bitcoin to the regional bank crisis in March, when several major banks failed, including Silicon Valley Bank and Signature Bank. “As regional banks are going bankrupt, and stocks are imploding across the board … bitcoin rallied from $19,000 to $30,000,” the Ark Invest CEO noted, emphasizing:
That was the flight to safety. That is the insurance policy … that we believe everyone will want at the end of the day.
Multiple people have warned that more banks are about to fail, including Rich Dad Poor Dad author Robert Kiyosaki. Economist Peter Schiff, however, believes that all banks will fail and people will suffer massive losses as the banking crisis unfolds.
Wood highlighted that bitcoin is an “insurance policy against two things.” Firstly, she emphasized its role in protecting against wealth confiscation, whether through direct means or inflation. Secondly, in a deflationary environment, bitcoin serves as a hedge against counterparty risk. Emphasizing the decentralized and transparent nature of BTC, the Ark Invest executive believes that a repeat of the financial crisis of 2008-2009 will not happen. “We won’t have an ‘08-‘09 with bitcoin. Everything is decentralized and transparent — no obfuscation,” she stressed.
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