Investor veteran, Cathie Wood, is confident that the price of the cryptocurrency Bitcoin (BTC) has a great chance of reaching US$1.5 million. The CEO of investment management company Ark Invest explained why her company’s belief in the potential price of BTC has increased. According to her, the performance of this cryptocurrency during the regional banking crisis earlier this year has soared to a point of security.
News Bitcoin reported from Ark Investment Management that the price of BTC will reach US$1.5 million per coin. “Our confidence has increased in the bullish scenario,” said Cathie in an interview with Bloomberg on Monday.
The bullish scenario that Wood referred to is one of three scenarios outlined by Ark Invest in their annual Big Ideas 2023, published in February. In the company’s base scenario, the price of Bitcoin is projected to reach US$682,800 by the end of December 2030, while in the bullish scenario, the price of BTC is projected to jump to US$1.48 million in the same time period.
Wood attributed the increase in optimism towards Bitcoin to the regional banking crisis in March, when several major banks experienced failures, including Silicon Valley Bank and Signature Bank. “When regional banks go bankrupt, and stocks decline across the market… Bitcoin jumped from US$19,000 to US$30,000,” noted the CEO of Ark Invest.
Some observers have warned that more banks will fail, including author of Rich Dad Poor Dad, Robert Kiyosaki. However, economist Peter Schiff believes that all banks will fail and people will suffer significant losses due to the banking crisis.
Cathie added that Ark Invest still considers Bitcoin as the ultimate hedge that everyone will desire at the end of the day. “First, Bitcoin’s role in protecting against wealth confiscation, both directly and through inflation,” she explained. As for the second reason, according to Cathie, in a deflationary environment, Bitcoin serves as a hedge against counterparty risk.
By emphasizing the decentralized and transparent nature of BTC, Ark Invest executives believe that a repeat of the 2008-2009 financial crisis will not occur. “We will not have a ’08-’09 with Bitcoin. Everything is decentralized and transparent, there is no blurring,” she emphasized.
Meanwhile, US presidential candidate Robert F. Kennedy Jr. is campaigning for a plan to support the US Dollar with Bitcoin and eliminate capital gains tax when exchanging Bitcoin for the US Dollar. Kennedy asserted that his government’s mission is to make America a global cryptocurrency center, especially for Bitcoin. “What will happen is… ironically, we will be able to use bitcoin to help save the US Dollar,” said the son of former US Attorney General and Senator, Robert F. Kennedy, and the nephew of former US President, John F. Kennedy. [ab]