Cathie Wood, CEO of ARK Invest, reiterated her bullish outlook on bitcoin (btc) in a recent interview with Bloomberg, suggesting that significant political and regulatory changes could propel the cryptocurrency to new heights.
Will bitcoin surpass $1 million in 2030?
With the election of Donald Trump, Wood anticipates an increase in acquisitions of private companies that have been stymied by “regulatory bureaucracy,” which he believes will open up substantial opportunities for investors and venture capitalists.
during it interviewWood noted that changes at the Federal Trade Commission (FTC) are likely to reinvigorate M&A activity, paving the way for what she calls “liquidity events.”
This shift could lead to a more dynamic market environment in which strategic buyers can actively evaluate and bid on innovative companies, ultimately improving pricing.
“The FTC has prevented mergers and acquisitions. That's going to change,” Wood said, emphasizing that these developments could significantly alter the financial picture.
In his continued defense of bitcoin, Wood reiterated a bold prediction: the cryptocurrency could surpass $1 million by 2030. This claim is based on the recent rally in the currency's price, which has seen bitcoin rise to over $108,000.
Wood attributes this growth not only to market dynamics but also to the inherent scarcity of bitcoin, which has a total supply limit of 21 million coins.
She draws a stark contrast between bitcoin and gold, noting that while rising gold prices generally lead to higher production rates, the price of bitcoin fixed supply ensures that its scarcity will only intensify over time. “It's becoming even scarcer than gold,” he said, reinforcing his belief in bitcoin's unique value proposition.
Wood highlights Musk's role in overcoming regulatory hurdles
Wood's investment philosophy has garnered both praise and criticism, particularly regarding his high-risk bets on emerging technologies.
Your ARK innovation exchange traded fund (ETF), valued at $6.7 billion, has experienced significant volatility, reflecting the challenges and rewards associated with investing in disruptive sectors. However, Wood's predictions for both bitcoin and Tesla have proven to be prescient and have generated considerable returns for investors.
Additionally, Wood expressed confidence in Elon Musk's new initiative focused on streamlining government operations, aptly named the Department of Government Efficiency (DOGE). She believes that Musk's experience with regulatory obstacles uniquely positions you to effect significant changes in government structures.
“He just knows that he can change the world faster than he already has if he removes some of those obstacles,” Wood said, suggesting that Musk's influence could lead to a more favorable environment for innovation.
At the time of writing, bitcoin is trading at $97,268, down 4% weekly.
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