As chief executive, Cathie Wood of Ark Invest has calculated price for again the Bitcoin once in her latest "Big Ideas 2025". According to her study, Bitcoin can also be scaled up to as high as $1.5 million in the short term. This prediction is not a novelty, even in December 2024 Wood had already provided a very similar figure as a target price. However, in that current evaluation her long term perspective on the stability of cryptocurrency is vindicated.
Institutional Adoption as a Key Driver
"Up for good" are in part what Wood describes as the growing acceptance of Bitcoin institutionalizing. An emerging market of institutional investors and corporations has started to view Bitcoin as a possible addition to traditional market asset classes. However, for reasons of its peculiar characteristics (e.g., low number, 2144 (or 21x 10(6) coins), Bitcoin is not only different from fiat money or from metals of its precious kind. Wood suggests that in a market controlled by institutional investors, using increasingly complex risk representations, i.e., Big Data, and Artificial Intelligence, demand could indeed become infinitely large.
Bitcoin as a New Asset Class
Consistent with Wood, Bitcoin is transmogrified into an increasing amount of its own asset). Due to the low intercorrelation with traditional financial markets it is considered a valuable portfolio diversification asset. Not to mention, Bitcoin is also getting more and more attention as an inflation hedge and economic uncertainty hedge. The recent breakthrough for bitcoin ETFs has made the market open for institutional investors and it may lead to further market expansion.
Future Prospects: $1.5 Million?
The forecast made by Ark Invest assumes that BTC is by all standards the global asset of reserve currency. Wood says "of course, it does not come from malice and gossip but from facts and market studies. If both the trend occurring at the institutional level as well as the Figure of Merit for the adoption rate are also increased, then Bitcoin may, at the very least, exceed the price that has been calculated at $1.50 million.
