ARK Invest’s Cathie Wood Lowers Her Bitcoin Price Target – Here’s Why

The price of Bitcoin is trading just below $103,000 after falling by 16% over the past month, and even the market’s most optimistic believers are tempering ￰0￱ Invest CEO Cathie Wood, known for her bold projections for Bitcoin , said during an interview on CNBC’s Squawk Box that she has revised her bullish Bitcoin price target downward by $300,000, citing the rapid rise of stablecoins as the main reason for the ￰1￱ Taking Over Part Of Bitcoin’s Role Wood explained that stablecoins are fulfilling a function she and her team initially believed Bitcoin would dominate, i. e., serving as a financial tool for emerging ￰2￱ noted that stablecoins have become the preferred digital assets in many ￰3￱ to her, this trend has expanded far more quickly than anyone expected, leading ARK Invest to trim its long-term bullish projection for Bitcoin by $300,000.

This brings down the Bitcoin projection from $1.5 million by 2030 to about $1.2 ￰4￱ said the firm’s models now recognize that stablecoins are scaling faster than ￰5￱ her words, “stablecoins are scaling here much faster than anyone,” and their growth is effectively taking a slice of the market Bitcoin was once expected to capture. Gold, Institutions, And The Bigger Picture When asked if gold is factored into her forecast, Wood explained that the $300,000 reduction assumes all other things being equal, and gold continues to grow the way it is. However, since gold has also doubled in value since ARK Invest’s initial Bitcoin forecast, the comparison has become more ￰6￱ reiterated that Bitcoin’s investment case remains intact because it is both digital gold and a technological innovation forming the foundation of a global monetary ￰7￱ noted that Bitcoin is the “lead in a new asset class” while distinguishing stablecoins as digital cash ￰8￱ relationship between gold, stablecoins, and Bitcoin represents what she described as a dynamic interplay of “puts and takes.” Despite trimming her price forecast, Wood stressed that ARK is fundamentally bullish on Bitcoin’s long-term ￰9￱ as ARK Invest moderates expectations, Wood highlighted that institutional interest in Bitcoin and blockchain-based payment systems is still at an early ￰10￱ noted that large financial players are only beginning to test the waters, with early experiments in new payment rails and digital asset integration just beginning to take ￰11￱ Wood, this early stage of institutional involvement is the first of a long runway for Bitcoin’s ￰12￱ the current short-term market weakness and competition from stablecoins, she also maintained her belief in Bitcoin’s technological role as the lead in a new asset class.

“We have just started,” she said, adding that there is still “a long way to go.” At the time of writing, Bitcoin is trading at $102,413, up by 1% in the past 24 hours but down by 7% and 16% in the past seven and 30 days, ￰13￱ image from Unsplash, chart from TradingView