According to the CEO of global investment management firm ARK Invest, Cathie Wood, the Bitcoin (BTC) and cryptocurrency sector could reach the value of a quarter of a quadrillion in the next seven years, considering the speed at which the industry and its wider adoption are growing.
Commenting on spot Bitcoin exchange-traded fund (ETF) applications and the crypto ecosystem, Wood said she expected it to be worth $25 trillion by 2030, as she explained in the interview with CNBC’s journalists at the ‘Squawk Box’ show aired on November 14.
Flight to safety of crypto
According to her, traditional markets are witnessing a “flight to quality,” as Larry Fink called it, or “flight to safety,” as ARK Invest calls it, i.e., into the cryptocurrency sphere “because there’s no counter-party risk in Bitcoin” and it has demonstrated strength against the banking sector.
“Look at what happened during the regional bank crisis. Bitcoin went from $19,000 to nearly $30,000 as the KRE, the regional bank index, was imploding. If you look at the bank stock index today, it is back down close to where it was in March.”
As Wood also pointed out, the success of the flagship decentralized finance (DeFi) asset will continue because “most people understand that Bitcoin is a money revolution. This is the first global, private – so no government oversight – digital – very important – rules-based, monetary system in history.”
Bitcoin price analysis
In the meantime, the price of Bitcoin currently stands at $36,500, which represents a decline of 1.10% in the last 24 hours, while the maiden crypto asset still holds onto the 5.08% gain accumulated in the last seven days and the advance of 35.96% across the past month.
As for the market capitalization of the crypto industry, at press time, it amounted to $1.39 trillion, demonstrating a slight decline of 1.56% on the day but still advancing over 30% in the last month and as much as 65.48% across the past year, according to the data retrieved from the crypto monitoring platform CoinMarketCap on November 14.
All things considered, Wood is far from being alone in her optimistic prognoses that have set the price of Bitcoin at $1 million by 2030, as Mike Novogratz, the CEO of crypto investment firm Galaxy Digital, believes that Bitcoin would undoubtedly reach $500,000 in the next five years or so, as Finbold reported in September.
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