ARK Invest Maintains Prediction That Bitcoin Prices Will hit $1M by 2030

Despite a severe downturn, public blockchains continue to foster multiple revolutions and one of them is bitcoin (BTC), says ARK Invest in its 2023 Big Ideas research report.

Bitcoin, in the eyes of ARK, is still predicted to close the decade at $1 million because its fundamentals are sound – despite a turbulent 2022.

“Contagion caused by centralized counterparties has elevated Bitcoin’s value propositions: decentralization, auditability, and transparency,” ARK writes. “Its network fundamentals have strengthened and its holder base has become more long-term focused.”

ARK backs up this claim by pointing to a higher hash rate, long-term holder supply, and addresses with a non-zero balance compared to the prior downturns.

(ARK Invest Big Ideas 2023 Report)

Because of this fundamental soundness, ARK says, bitcoin continues to outperform traditional asset classes.

On a five-year CAGR basis, bitcoin is up an average of 272% while global equities are up by 6.1%, global debt provided a yield of 1.4%, and gold is up by 2.2%.

(ARK Invest Big Ideas 2023 Report)

This isn’t the first time that ARK or its CEO Cathie Wood have made such bold predictions on crypto’s upwards trajectory. In May 2021, Wood made her first bold price prediction during an interview on Bloomberg, predicting bitcoin will go to $500,000 by 2026. In early 2022, she then upped the ante to $1 million by 2030.

ARK has also been quite bullish on Coinbase (COIN) throughout last December and January, continuing to enlarge its COIN position by buying around $30 million of its shares.

COIN is up 74% in the last month, outperforming bitcoin.

While Wood and ARK are well known for their positions and opinions on bitcoin, the report also touched on smart contracts and decentralized finance.

“As the value of tokenized financial assets grows on-chain, decentralized applications and the smart contract networks that power them could generate $450 billion in annual revenue and reach $5.3 trillion in market value by 2030,” Ark writes.

ARK’s Innovation ETF (ARKK) is up 31% in the last month, while its Next Generation Internet ETF (ARKW) is up 32%.