Bitcoin is still looking at triage to leading institutions like the investment management firm Ark Invest. Doubling down on its previous Bitcoin price prediction, Ark Invest maintains the conviction that Bitcoin will end the decade with a price of over $1 million.
“We believe Bitcoin’s long-term opportunity is strengthening. Despite a turbulent year, Bitcoin has not skipped a beat. Its network fundamentals have strengthened, and its holder base has become more long-term focused.” Ark wrote, in its recent research.
Ark first made its $1 million price prediction for Bitcoin in January 2022. In a research titled “Big Ideas 2022”, the Cathie Wood U.S.-based firm made a bullish claim, saying that Ethereum could tap $180,000 and that Bitcoin has the capacity to surpass $1 million come 2030.
One year later, Ark Invest is still reiterating the same bullish stance as it recently noted that “Contagion caused by centralized counterparties has elevated Bitcoin’s value propositions: decentralization, auditability, and transparency. The price of one bitcoin could exceed $1 million in the next decade.”
Factors supporting Ark Invest’s Bullish $1 million Bitcoin call
If Bitcoin closes 2030 in a bear market, ARK Invest expects the asset to close at $258,500. However, in a base market or a bull market, Bitcoin’s price value is expected to be capped at $682,800 and $1.48 million, respectively.
ARK notes that Bitcoin’s ability to outperform other major asset classes, despite the bear market moving prices from $69,000 in November 2021 to $15,797 in November 2022, is a notable factor.
Using a chart, Ark rolls out how Bitcoin’s compound annual returns (avrg. 272% in 2022) are greater than that of Gold, Global debt and global equities that averaged a combined total of 281.7%.
ARK also counts investment interest from leading Crypto firms like BlackRock, BNY Mellon, Fidelity and Eaglebrook Advisors.
With all four firms dipping their foot into cryptocurrency with major partnerships or launching products and services that serve millions of existing customers looking to enter the Bitcoin/Crypto market, ARK believes this will reflect in Bitcoin’s long-term price.
Bitcoin mining harnessing and containing national gas emissions, Bitcoin’s hashrate hitting a new ATH in 2022, exchanges becoming even more decentralized following the collapse of leading crypto firms, and Bitcoin’s capitulation hitting new levels are also bullish factors cited in the research report.