Bitcoin has been a hot topic lately, with many experts making predictions about its future price. One notable figure is Cathie Wood, CEO of Ark Invest, who has made some bold claims. Wood predicts that by 2030, Bitcoin could reach a price of $600,000 in her base case scenario, and $1.5 million in her bull case scenario. This would give Bitcoin a market cap of over $30 trillion.
Wood’s initial prediction was $1 million, but she raised it to $1.5 million after the approval of Bitcoin spot ETFs and other factors. She pointed to the increase in long-term and institutional holders, rising hash rate, and the introduction of ETFs as reasons for her updated forecast.
One of the ETFs launched by ARK and 21Shares, ARKB, has been a success, attracting over $2 billion in net assets in less than 2 months. It has seen significant inflows and has performed well against the market.
The introduction of ETFs has changed the dynamics of Bitcoin supply, with more institutions getting involved in Bitcoin trading. This has led to a supply squeeze, with inflows to the ETFs hitting an all-time high of nearly $680 million in one day.
Despite the potential for a supply squeeze, it is unlikely that the entire liquid supply of Bitcoin would be under ETF management by September 2024. Traders are likely to take profits as the price of Bitcoin rises, which could slow down ETF inflows.
It will be interesting to see how the increased demand from ETFs will impact the supply of sellers in the coming months and years. The price of Bitcoin is ultimately determined by the laws of supply and demand, and the market is closely watching to see how things unfold.