Cathie Wood’s firm ARK Invest has made a great prediction on the price of Bitcoin and Ethereum. As their Big Ideas Summit 2022 (BIS 2022) reports, Bitcoin could surpass $1 million in value by 2030. Ethereum will also expand its market cap significantly to $20 trillion over the next decade.
Both Bitcoin and Ethereum Will Overtake Gold in Market Cap According to ARK Invest
Analysts at ARK Invest, an investment management firm led by Cathie Wood, have predicted that the two market-leading cryptocurrencies will dominate even more within the next decade.
According to the company’s BIS 2022 report, Bitcoin price could hit a price above $1 million per Bitcoin by 2030. Ethereum could also see its market cap hit $20 trillion over the next decade.
This means the ETH price will be around $168,000/ETH. At these values, Bitcoin and Ethereum would have a combined market capitalization of around $42 trillion.
While the prediction looks ambitious, ARK Invest analysts say it remains cautious. This is because at those values, Bitcoin and Ethereum still represent only a fraction of the global asset value. They underscore this by noting that the global real estate market and the global bond market have a market capitalization of $220 trillion and $124 trillion, respectively. According to their analysis, Bitcoin and Ethereum are also expected to surpass the $10 trillion gold market cap in this time frame.
ARK Invest’s belief in Bitcoin stems from its leading role in decentralizing the global financial system. In its 13 years of existence, Bitcoin has become a money transfer network, an anti-seize asset, digital gold. It has also gained traction among national and corporate coffers.
Similarly, the breakout is at the heart of why ARK Invest is so bullish on Ethereum
The asset manager emphasized that smart contracts, which Ethereum pioneered, are starting to “take over traditional financial functions at the margin level” and are poised to “capture a piece of the global money supply.” demand is worth $123 trillion.”
How likely is the prediction?
The very optimistic outlook will face many challenges to become a reality. All in all, cryptocurrencies have failed to pass regulatory scrutiny. Bitcoin mining continues to be hunted for its high energy consumption. Similarly, the Ethereum blockchain has yet to deliver on the promise of scalability and transition to being a proof-of-stake protocol.
On the day, Bitcoin (BTC) is trading at around $33,380, up 3.37%. Ether (ETH) is also up 4.47% over the past 24 hours, trading at around $2400.