ARK Invest CEO Cathie Wood has recently updated her Bitcoin price predictions, presenting a bullish scenario of $1.5 million, a significant increase from her previous estimate of $1 million. This optimistic forecast comes following the approval of spot Bitcoin Exchange-Traded Funds (ETFs) by the Securities and Exchange Commission (SEC) in the United States.
ARK Invest, one of the asset managers approved by the SEC for Bitcoin ETFs, began trading on January 11, contributing to a brief surge in Bitcoin’s price to over $49,000. However, the cryptocurrency has since seen a slight decrease, currently trading 1.7% lower at $46,005, with a market cap of $900.7 billion and a 24-hour trading volume of $44.3 billion.
Wood has stated that the SEC’s approval serves as a “green light” for the bull case, indicating an increased probability of Bitcoin reaching her $1.5 million target. Her initial support for the $1 million price prediction was based on metrics such as hashrate, long-term holder supply, and non-zero balance addresses. The recent regulatory approval has added another layer of confidence in the forecast.
However, Wood also outlined a bearish scenario with a price target of $250,000 and a base case of $600,000. These scenarios consider various market dynamics and uncertainties that could impact Bitcoin’s trajectory, emphasizing the importance of a diversified approach to investing in this digital asset.
Standard Chartered Bank has also predicted a potential rise to $200,000 by the end of 2025, drawing parallels to the growth of gold after the introduction of the first U.S.-based gold Exchange-Traded Product (ETP) in 2004. Furthermore, CryptoQuant’s on-chain data analysis suggests that regulatory approval for spot Bitcoin ETFs could lead to an influx of approximately $155 billion into the market, potentially propelling Bitcoin’s market capitalization to new heights.
The approval of spot Bitcoin ETFs has already resulted in considerable market activity. Eric Balchunas, a Senior ETF Analyst, highlighted an extraordinary 703,000 individual trades across 11 spot ETFs, surpassing the trade volume of the popular $QQQ ETF. This surge in participation indicates a growing grassroots-level interest, marking a pivotal moment in ETF history.
There has also been a noteworthy shift in trading preferences, with investors selecting newer, more cost-effective ETFs offered by industry giants such as BlackRock and Fidelity Investments over traditional choices like Grayscale Bitcoin Trust (GBTC). Timothy Peterson, an investment manager from Cane Macro, estimated that the trading activities surrounding the ETF launch could necessitate the purchase of approximately 47,000 Bitcoin, amounting to $2.1 billion.
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| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Marcel Knobloch, Eric Balchunas, Cathie Wood, Timothy Peterson |
| Companies | Securities and Exchange Commission, ARK Invest, Fidelity Investments, BlackRock, Standard Chartered Bank |
| Currencies | Bitcoin |
| Securities | None |
