Bitcoin price is trading just below $103,000 after falling 16% over the past month, leaving even the most bullish believers in the market I’m tempering my expectations.
ARK Invest CEO Cathie Wood is famous for her A bold outlook for BitcoinIn an interview on CNBC’s Squawk Box, she said she lowered her bullish Bitcoin price target by $300,000. The rapid rise of stablecoins This is the main reason for the adjustment.
Stablecoin takes on some of the role of Bitcoin
wood explained Stablecoins are fulfilling the function she and her team initially believed Bitcoin would dominate: serving as a financial tool for emerging economies. She noted that stablecoins have become the preferred digital asset in many markets. According to her, this trend has expanded much faster than expected, leading ARK Invest to reduce its long-term bullish outlook for Bitcoin by $300,000. This lowers Bitcoin’s outlook from $1.5 million to around $1.2 million by 2030.
Wood said the company’s model is now stablecoins. It scales faster than expected. In her words, “Stablecoins are growing much faster than anyone else.” And their growth is effectively taking over a portion of the market that Bitcoin was once expected to capture.
Gold, institutions, and the bigger picture
When asked if her forecast includes gold, Wood explained that the $300,000 decline assumes everything else is equal and gold continues to grow the same way it has now.
However, since ARK Invest’s initial Bitcoin prediction, the value of gold has also doubled, making the comparison more nuanced. She reiterated that the investment case for Bitcoin remains as it is digital gold and a technological innovation that forms the basis of the global monetary system.
Distinguishing stablecoins from digital cash equivalents, Wood pointed out that Bitcoin is “at the forefront of a new asset class.” The relationship between gold, stablecoins and Bitcoin represents what she describes as a dynamic interplay of “put and take.” Despite reducing his price prediction, Wood emphasized that ARK remains fundamentally optimistic about Bitcoin’s long-term potential.
Even as ARK Invest tempered its expectations, Wood emphasized that institutional interest in Bitcoin and blockchain-based payment systems is still in its infancy. She noted that large financial companies are just beginning to test the market, and early experiments with new payment methods and digital asset integration are just starting to take shape.
In the case of wood this is Early stages of institutional involvement This is the first of a long runway for Bitcoin growth. Despite the present short term market weakness Even amid competition from stablecoins, she maintained faith in Bitcoin’s technological role as a leader in a new asset class.
“We’re just getting started,” she said. “There’s still a long way to go.”
As of this writing, Bitcoin is trading at $102,413, up 1% in the last 24 hours but down 7% and 16% over the past 7 and 30 days, respectively.
Featured image from Unsplash, chart from TradingView
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