ARK Invest: Bitcoin at 1 million, Ethereum at 180,000 by 2030

In a new research report, US investment firm ARK Invest has shared bold price predictions for Bitcoin and Ethereum for the end of this decade.

ARK Presents Case for Major Crypto Assets

ARK Invest remains bullish on cryptocurrencies, and specifically on the two top assets in this space.

Cathie Wood’s (US-based) investment firm has released a new report titled “Big Ideas 2022,” which paints a bullish picture for bitcoin and ethereum. The report indicates a price target of $1 million per bitcoin by the end of 2030 and also states that the market capitalization of Ethereum could exceed $20 trillion. Ethereum’s supply is around 120 million coins and it is estimated that it will burn around 1 million coins per year once it switches to the Proof-of-Stake method, which would bring the supply closer of 110 million pieces by the end of the decade. This means that the price of ETH would be around $180,000 if ARK’s prediction comes true.

On bitcoin’s growth potential, ARK analyst Yassine Elmandjra wrote:

Bitcoin’s market capitalization is still a fraction of global assets and is likely to expand as nation states adopt it as legal tender. According to our estimates, the price of a bitcoin could exceed $1 million by 2030. »

At $1 million per bitcoin, anyone buying this asset today would realize a return of around 26 times the current price of $37,800. The company based its long-term appeal on the argument that the leading crypto asset is only a fraction of the value of global assets amid growing adoption each year.

ARK Invest offers several actively managed exchange-traded funds and has $23.9 billion in assets under management. She hopes to launch a Bitcoin ETF product in the near future.

Ms. Wood has never made a secret of her bullish stance on cryptocurrencies: In 2021, she predicted bitcoin could hit $500,000 by 2026. She made the comments in a year that has seen the increase in institutional demand for crypto pave the way for the first bitcoin futures ETF to hit the US market in October 2021.

While ARK and Wood were able to show confidence in bitcoin, the market has shown less enthusiasm for this asset in recent weeks. Over the past 30 days, bitcoin has tumbled from $51,000 to six-month lows of below $34,000. Although it has shown a slight recovery in recent days, it is still down 44% from its all-time high of $69,000 recorded in November 2021.

Despite poor market conditions, ARK Invest’s research indicates how bitcoin adoption could grow over a long-term horizon. The report used Bitcoin’s on-chain metrics to show that its biggest holders were focused on the long term. ARK said the number of long-term investors has increased sharply in 2021, with addresses showing long-term behavior collectively holding 13.5 million bitcoins that have not moved for 155 days.

To justify its $20 trillion market cap target for Ethereum, ARK stated that ETH has value as the default currency in DeFi, NFTs, and other native Ethereum applications. He added that ETH could take a substantial share of the global financial services market, which is expected to reach a valuation of $123 trillion by 2030. ETH is currently trading at $2,630, which puts the Ethereum market cap just above $312 billion. It’s down 47% since November.

According to our research, Ethereum could replace many traditional financial services and its native token, Ether, could become a global currency“, can we read in the report.