This is What’s Backing Ark’s Big Bitcoin, Ethereum and Web 3 Forecasts
Ark Investment Management, the fund led by the well-known technology investor Cathie Wood, has revealed just how bullish they are on bitcoin (BTC), ethereum (ETH), and Web3 more broadly -- while laying out their case for how BTC could reach a price of more than USD 1m in the next decade.
In a report titled Big Ideas 2022, Ark said that bitcoin’s holder base is increasingly focused on long-term fundamentals, with both the number of coins held by long-term holders and the number of addresses deemed to be long-term holders seeing all-time highs in 2021.
Furthermore, Ark’s report said that bitcoin is gaining market share as a global settlement network, with bitcoin’s settlement volume in 2021 for the first time surpassing the Visa payment volume.
The firm argued that “technological breakthroughs” could help bitcoin scale further in the years to come. It described last year’s Taproot upgrade as a “conservative, strategic enhancement,” while calling the growth of bitcoin’s Lightning Network during 2021 “significant.”
Lastly, Ark pointed to bitcoin’s growing relevance as an institutional asset, as well as the adoption of bitcoin as legal tender in El Salvador, as signs that its holder base is “broadening” -- with increased adoption and more regulated bitcoin-based investment products becoming available.
“According to our research, Bitcoin’s market capitalization could scale more than 25-fold in the next decade, with each [coin] exceeding USD 1 million in value,” the report stated.
In conclusion, Ark summarized its more than USD 1m 2030 price target for bitcoin by adding up estimated market values arising from the following eight use cases it sees for the coin:
When it comes to Ethereum, Ark said that ETH in 2021 emerged as the
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