Bitcoin Savings: Should You Bet Big on Cathie Wood's Mega Million Prediction?
Could the value of Bitcoin potentially reach one million dollars?
Crypto's current phase isn't shining bright, but star investor Cathie Wood is undeterred. She's suggested a mega leap for Bitcoin, predicting it could reach a jaw-dropping million dollars by 2030. But is this prediction a goldmine or just a pipe dream? Let's dive in!
Cathie Wood, the charismatic US investor and fund manager, has made waves again with her hefty price forecast. This time, she's pointing to Bitcoin, the OG cryptocurrency, hoping it'll reach an astonishing $1M per coin by the end of the decade.
If her prediction comes true, the market cap of Bitcoin, with a total bag of just 21M coins, would top an impressive 21 trillion dollars. That would make Bitcoin more than five times as valuable as Apple, currently the world's most valuable company.
Now, you might be wondering if such a market cap figure is achievable, even for the most innovative digital coin. Interestingly, it's theoretically possible for fiat currency market caps to reach these levels. While there's no exact figure, estimates place the total value of major currencies between 600 trillion and 1.2 quadrillion dollars. In this scenario, Bitcoin would still be a small player, capable of a mind-boggling 4,600% price surge.
Cathie Wood: Dream Weaver or Misleader?
Cathie Wood enjoys a reputation for bold, audacious predictions. In the past, she's proposed a 50% annual growth rate for her own fund, while it actually took a hard hit, losing more than two-thirds of its value.
Similar observations can be made about stocks like Tesla, once the darling of the ARK fund management, predicted to hit 3,000 USD, now trading at 630 USD after a recent split.
In fact, those eye-catching price targets might just be marketing strategies for Mrs. Wood, designed to draw attention to herself and her ETFs. Whether Bitcoin will truly reach a million dollars is less relevant, especially if most of us forget the hype by 2030. The ARK management's only real concern is attracting more private investment funds into their expensive ETF products.
What's Next for Bitcoin?
After a tumultuous ride, Bitcoin's currently hanging out between the 19K and 21K USD marks. While it's difficult to say goodbye to hopes of rapid price increases, it seems we'll have to wait a bit longer. The market's currently saturated with speculative investments, favoring real corporate profits for now.
For a new rally, Bitcoin needs a fresh, compelling story. That story might unfold in 2024, when the next halving of the cryptocurrency is scheduled.
Disclosure: The CEO and majority shareholder of the publisher Boerse Medien AG, Mr. Bernd Foerstch, holds positions over the financial instruments mentioned in the publication, which could potentially benefit from the price developments resulting from the publication.
- If Cathie Wood's prediction comes true and Bitcoin reaches $1M per coin, the market cap of Bitcoin, with a total of 21M coins, would reach an impressive $21 trillion, making it more valuable than Apple, the world's most valuable company.
- In the past, Cathie Wood has proposed audacious predictions, such as a 50% annual growth rate for her own fund, despite it taking a hard hit and losing more than two-thirds of its value.
- In 2024, the next halving of Bitcoin is scheduled, which might provide a fresh, compelling story needed for a new rally, if Bitcoin aims to break through the $1M mark.
- Mr. Bernd Foerstch, the CEO and majority shareholder of the publisher Boerse Medien AG, holds positions over the financial instruments mentioned in the publication, which could potentially benefit from the price developments resulting from the publication.
