In a new research report, US investment firm ARK Invest has shared a bold price forecast for Bitcoin and Ethereum for the end of this decade.
ARK Presents Case for Major Crypto Assets
ARK Invest remains bullish on cryptocurrencies, and in particular on the two major assets in this space.
Investment firm Cathie Wood (US-based) has released a new report titled “Big Ideas 2022,” which paints a bullish picture for bitcoin and ethereum. The report shows a price target of $ 1 million per bitcoin by the end of 2030 and also states that Ethereum ‘s market capitalization could exceed $ 20 trillion. Ethereum’s supply is around 120 million coins and is estimated to burn about 1 million coins per year when it switches to Proof – of – Stake mode, bringing the closer supply of 110 million pieces under end of decade. This means that the price of ETH would be around $ 180,000 if ARK’s predictions come true.
Regarding bitcoin’s growth potential, ARK analyst Yassine Elmandjra wrote:
” Bitcoin market cap is still a fraction of global assets and is likely to expand as nation states accept it as legal tender. According to our estimates, the price of bitcoin could exceed $ 1 million by 2030. »
At $ 1 million per bitcoin, anyone who buys this asset today would realize a yield of about 26 times the current price of $ 37,800. The company based its long-term appeal on the argument that the main crypto asset is only a fraction of the value of global assets among the ever-growing adoptions.
ARK Invest offers a number of actively managed funds on the exchange and manages $ 23.9 billion in assets. She hopes to launch a Bitcoin ETF product in the near future.
Ms Wood did not secretly state her bullish stance on cryptocurrencies: In 2021, she predicted that bitcoin could hit $ 500,000 by 2026. She made the comments in a year that saw the rise in institutional demand for cryptocurrencies pave the way for the first time. bitcoin ETF futures to hit the US market in October 2021.
While ARK and Wood have been 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 fallen from $ 51,000 to a six-month low of below $ 34,000. While it has shown a slight recovery over the past few days, it is still down 44% from the record high of $ 69,000 recorded in November 2021.
Despite poor market conditions, ARK Invest research showed how bitcoin adoption could grow beyond a long-term horizon. The report used metrics on the Bitcoin chain to show that its main holders were focused on the long term. ARK said the number of long-term investors has increased dramatically in 2021, with addresses showing long-term combined behavior holding 13.5 million bitcoins that have not been moved for 155 days.
To protect its $ 20 trillion market cap target for Ethereum, ARK said ETH has value as a default currency in DeFi, NFTs, and other Ethereum native applications. He also said that ETH could take a significant share of the global financial services market, which is expected to reach a value of $ 123 trillion by 2030. ETH is currently trading at $ 2,630, bringing the Ethereum market cap to just over $ 312 billion . It’s down 47% from November.
” According to our research, Ethereum could be replaced by many traditional financial services and its native token, Ether, could become a global currency“, Can we read in the report.