Cathie Wood, the CEO and CIO of ARK Invest, has reiterated ARK Invest's bullish Bitcoin price target of $1.5 million in their "bull case" scenario by 2030. This reaffirmation comes as markets show signs of a potential year-end rally, fueled by improving liquidity and a possible shift in U.S. monetary policy.
According to ARK Invest, improving market conditions are linked to increasing liquidity. Since the end of the U.S. government shutdown, $70 billion has reportedly returned to the markets, and another $300 billion is expected to flow in as the Treasury General Account normalizes over the next few weeks. A potential catalyst for further market improvement is the anticipated end of the Federal Reserve's quantitative tightening program on December 1st, with a possible pivot towards quantitative easing. Quantitative easing involves bond-buying to reduce borrowing costs and stimulate economic activity. ARK Invest stated in a Wednesday X post that with liquidity returning, the end of quantitative tightening on December 1st, and monetary policy potentially becoming supportive, conditions are developing for markets to reverse recent drawdowns.
Wood also addressed the current "liquidity squeeze" impacting the cryptocurrency and artificial intelligence markets, suggesting it may ease in the coming weeks in a Thursday X post. ARK Invest's initial Bitcoin price targets, revealed earlier in April, included the $1.5 million "bull case" and a $300,000 "bear case". Despite the recent crypto market correction and the increasing role of stablecoins, the $1.5 million target remains.
In a November 2024 interview with CNBC, Wood stated that ARK Invest's base case for Bitcoin's value is around $650,000, while the bull case ranges between $1 million and $1.5 million. ARK Invest first presented these Bitcoin price forecasts in its 2023 Big Ideas report, published in February of the previous year.
Wood has emphasized Bitcoin's evolution beyond a global monetary system to become a new asset class. She noted the increasing interest from institutions and asset allocators, who recognize Bitcoin's unique behavior compared to other assets, potentially driving further investment. Wood also stated back in November 2024 that Bitcoin was still a good investment at $90,000. She mentioned ARK Invest's early exposure to Bitcoin in 2015 at $250, highlighting their long-term confidence in its potential.
