Ark Invest has significantly increased its confidence in the potential of Bitcoin, projecting a remarkable surge in its price to $2.3 million by 2030.

This optimistic outlook, disclosed in the firm’s annual research report released on Friday, took into consideration various factors influencing the cryptocurrency market, smart contract platforms, and the broader landscape of emerging technologies.

Ark Invest’s projections suggested that if Bitcoin’s share in global investment portfolios rises to a modest 1%, its price could soar to $120,000. However, the investment firm added that its banking on the best scenario where this share increases to 19.4%, propelling Bitcoin to an unprecedented $2.3 million in the next six years.

Notably, achieving that price target would signify an extraordinary growth of approximately 5,144.33% in Bitcoin’s price from its current level of $43,070.

That said, the firm’s calculations were derived by optimizing the risk-adjusted return parameter based on the results of 2023 with traditional assets like gold, stocks, and commodities. Notably, amid the U.S. banking crisis in the past few years, Bitcoin underscored its capacity as a reliable safe-haven asset, further consolidating its standing in the eyes of investors. Indeed, as the firm emphasized, over the past seven years, Bitcoin has demonstrated a remarkable annualized return, averaging an impressive 44%. This starkly contrasts the more modest average of 5.7% observed in other major assets.

Meanwhile, the firm further identified key drivers for further capitalization of Bitcoin, including the approval of spot Bitcoin ETFs, the upcoming halving process, increased institutional adoption, and a reduction in regulatory uncertainties. As per the firm, these factors collectively contribute to the positive sentiment surrounding Bitcoin’s future growth trajectory.

That said, these projections align with the bullish predictions of ARK Invest CEO Cathie Wood, who recently forecasted Bitcoin’s growth to $1.5 million by 2030.

Beyond Bitcoin, Ark Invest revealed that it is also eyeing significant developments in artificial intelligence, digital wallets, and smart contracts. The analysts anticipate that smart contract platforms will experience substantial growth, reaching annual commission levels of $450 billion with a compound annual growth rate (CAGR) of 78% by 2030. 

Additionally, they noted digital wallets are expected to play a pivotal role in revenue generation, particularly in closed-loop consumer payments, merchant-linked banking, and employee payroll.

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Filed under: Bitcoin - @ February 4, 2024 8:55 pm