ARK Investment Management, the firm led by star fund manager Cathie Wood, predicts that bitcoin’s price could exceed $1 million by 2030 as the cryptocurrency’s global usage is still only in its early days.
“Bitcoin’s market capitalization still represents a fraction of global assets and is likely to scale as nation-states adopt [it] as legal tender,” ARK analyst Yassine Elmandjra wrote in the firm’s “Big Ideas 2022” outlook report, which was released on Tuesday.
ARK added in its bitcoin outlook that the cryptocurrency is taking market share as a global settlement network. According to ARK’s research, bitcoin’s cumulative transfer volume increased by 463% in 2021, and its annual settlement volume has surpassed Visa’s annual payments volume.
Technological advancements such as the Taproot upgrade and Lightning Network may also help bitcoin to scale. And institutional ownership of bitcoin will also become more widespread, according to ARK.
Last year, Wood herself predicted that bitcoin would reach $500,000 by 2026.