Ark Invest’s CEO, Cathie Wood, made an even bigger Bitcoin price prediction again after stating that the digital asset would get to $2.3 million, Barrons reported first.
“Running the numbers in a scenario where the $250 trillion global investible asset base is realigned along these lines—a long shot, to say the very least—Ark predicted that the hypothetical impact of such allocation would push Bitcoin prices to $2.3 million,” Barron stated, citing Cathie Wood.
The prediction came from the annual Big Ideas report for 2024 released by Wood’s Ark Invest, where it alleged that 19.4% of Bitcoin was the optimal allocation for one’s investment portfolio in 2023. Notably, Ark Invest’s optimal allocation has increased drastically over the years, moving from 0.5% in 2015 to 6.2% in 2022.
More Allocation for Bitcoin
Cathie Wood based her latest $2.3 million price prediction on the basis that she sees firms keying into the 19.4% optimal allocation for Bitcoin. According to her, an alignment in such an order in a global market worth more than $250 trillion would push the Bitcoin price to $2.3 million.
The Ark Invest boss didn’t give a timeline for the price realization, considering how improbable the factors leading to its achievements are. However, the guts to predict a 5,300% increment in Bitcoin from the current market price indicates how bullish Wood is on the cryptocurrency.
Practicable?
Bitcoin has made significant strides lately after drawing the interest of $10 trillion asset manager BlackRock. Such interest, coupled with a court ruling mandating the Securities and Exchange Commission (SEC) to harken to Grayscale’s request, led to the approval of the first spot Bitcoin ETF in the US.
However, a 19.4% portfolio allocation for Bitcoin may be too much to ask for investors at this point. Despite Bitcoin outperforming almost all traditional assets in 2023, many investors are still skeptical about the currency’s volatility and ease of manipulation.
Backlashes from personalities like Elizabeth Warren and a continual crackdown by the SEC would also concern investors, who would prefer assets with more regulation to Bitcoin. However, with the improvements around Bitcoin and widespread adoption of the asset, getting to a point where most global investors allocate 19.4% to it cannot be ruled out.
