Source : zycrypto.com
Pay no attention to the latest crypto market crash. ARK Invest, the asset management firm helmed by Cathie Wood, says Bitcoin has a chance of crossing the $1 million bracket. But you’re going to have to wait for BTC to reach that marquee figure.
The New York-based investment house believes the bellwether cryptocurrency will be able to achieve this milestone in 2030. The world’s second-largest crypto, Ethereum, will also grow its market value considerably to $20 trillion in the next decade.
ARK Invest Sees Bitcoin Going To $1 Million By 2030
ARK Invest published a report titled “Big Ideas 2022”, presenting quite a rosy picture for bitcoin and ethereum. What immediately caught our attention is the firm’s predictions on the top two cryptocurrencies.
The report gives a price tag of $1 million per bitcoin by 2030. ARK analysts indicate that majority of the large bitcoin holders have matured and are focused on holding the asset for the long haul. Their report points to bitcoin’s on-chain metrics such as the Aggregated Cost Basis and the Long Term Holder Basis, which are both at all-time highs. The latter is the justification of ARK’s opinion about holders of the most valuable cryptocurrency changing their mindset from speculative to long-term.
Commenting on the growth potential of the bitcoin price, ARK strategist Yassine Elmandjra said:
“Bitcoin’s market capitalization still represents a fraction of global assets and is likely to scale as nation-states adopt it as legal tender. According to our estimates, the price of one Bitcoin could exceed $1 million by 2030.”
Bitcoin is currently valued at $38,256.81. This means that if Bitcoin eventually hits $1 million, anyone that purchases the cryptocurrency today would net a return of 25X on their investment.
ARK Invest is confident about bitcoin’s long-term potential owing to its growing role in the financial system of the world. In its 13 years of existence, the cryptocurrency has emerged as a global remittance network, a viable hedge against inflation and currency devaluation, and a censorship-resistant asset. Moreover, it has made its way to mega companies’ balance sheets as well as being adopted by sovereign states.
Ethereum’s Market Cap To Exceed $20 Trillion
As for Ethereum, ARK analysts expect its market cap to surpass $20 trillion. This would put the price of Ethereum at around $170,000 per ETH. The report notes that smart contracts, which Ethereum is predominantly home to, are starting to overtake traditional financial solutions. The cryptocurrency is also primed to bag a big chunk of the $123 trillion global monetary supply.
“According to our research, Ethereum could displace many traditional financial services, and its native token, Ether, could compete as global money,” the analysts wrote.
ARK also cited Layer 2 solutions that have come to be a popular alternative for mainnet transactions after gas fees on the Ethereum network went through the roof.
Bitcoin, Ethereum: Black Hole Or To The Moon?
Some critics have slammed both bitcoin and Ethereum, especially after the latest rout, claiming that their prices have fallen into a black hole. Bitcoin is also facing mounting regulatory pressure worldwide in recent months (case in point, China and Russia have moved to ban crypto mining and trading). Similarly, Ethereum core developers are yet to shift the network away from proof-of-work to a more scalable proof-of-stake chain.
ARK, however, is optimistic about the future of the two coins. In fact, the analysts believe their prediction is quite conservative because the forecasted figures represent just a fraction of the value of global assets.
This is a sign that bitcoin and ethereum’s growth in the last months is more than a blip, numerous roadblocks notwithstanding, and is set for greater heights in the coming years.