Bitcoin prices have risen 44% so far this year, driven by strong demand for spot Bitcoin ETFs and expectations for the upcoming halving event in April, which has fueled the confidence of prominent Bitcoin bulls on Wall Street. They believe that Bitcoin still has greater upside potential.
Cathie Wood, CEO of Ark Investment and a well-known investor, now predicts that the price of Bitcoin may rise to $3.8 million.
On Friday, she told the Bitcoin Investor Day conference in New York that large institutional adoption and the listing of spot Bitcoin ETFs meant that in a bull market scenario, the price target for Bitcoin was $3.8 million, which is higher than her previous prediction. is more than $2 million higher.
Wood's ARK Investment Management Company (ARK Invest) released a Bitcoin Outlook report in January this year, predicting that the price of Bitcoin may reach $1.5 million by 2030.
Wood said, “Last year we made a case for being bullish on Bitcoin. The SEC finally gave institutions the green light after strong protests. Our analysis is that if institutional investors invest a little more than 5% of their portfolios, Bitcoin (and we do think they will do that over time), then that alone would add $2.3 million to our initial price target of $1.5 million."
Earlier this year, the SEC approved 11 companies, including BlackRock and Fidelity, to issue spot Bitcoin ETFs, and Ark Investment Management was one of them. Demand for these products has surged since their launch, with record inflows into U.S. spot Bitcoin ETFs, which have directly invested in and held the token, while also fueling demand for Bitcoin itself.
Industry veterans also predict that the Bitcoin halving event expected to occur in April could cause a supply shock, further fueling the current demand-driven rebound.
Wood told the conference that she expects the upcoming halving to have a similar impact to previous ones. In the 12 months after the three halvings in 2012, 2016 and 2020, the price of Bitcoin increased by 8069%, 284% and 559% respectively.
Wood insists, "We think Bitcoin still has a long way to go. We are in the early stages of truly building an internet-native financial ecosystem and disintermediation."
Billionaire Mike Novogratz also predicts that Bitcoin will continue to rise, but the reason is the lack of fiscal discipline by the U.S. government.
Also in an interview at the Bitcoin Investor Day conference, the Galaxy Digital CEO said that irresponsible politicians and reckless spending could bring long-term benefits to Bitcoin.
"What's the macro outlook for Bitcoin? The answer is simple. The government will lose control and won't be able to stop spending money," Novogratz said, calling Trump and Biden the two presidents who have destroyed fiscal stability. .
Many commentators have warned that high government spending is a threat because it will accelerate the already rapid pace of borrowing and could further increase inflation. As the U.S. national debt surpasses $34 trillion this year, warnings about excessive government borrowing are mounting.
Bank of America noted earlier this month that Bitcoin investments are rising as a hedge against "debt devaluation" as the U.S. adds $1 trillion to its national debt every 100 days.
Novogratz said that when he first became interested in Bitcoin more than 10 years ago, the price of Bitcoin was less than $100. He went on to note that Trump increased spending even before the coronavirus outbreak. After the outbreak of the epidemic, the deficit rate in the United States continued to rise. After Biden took office and launched a number of new spending plans, the deficit rate increased further. Structural deficits are now normalized, with government spending accounting for more than 25% of GDP.
“Unless you see Democratic and Republican administrations saying ‘enough is enough,’ Bitcoin will continue to move higher,” Novogratz said.
Article forwarded from: Golden Ten Data
