The price of Bitcoin BTC/USD rebounded in 2023, making it one of the best performing assets so far this year. Bitcoin crossed the $30,000 mark on Monday for the first time since June 2022. Ark Invest CEO Cathy Wood is among financial experts who see more upside for the leading cryptocurrency.
Here's a look at how Wood's price prediction could pay off for investors.
What happened: Over the years, Wood has been a strong supporter of Bitcoin and supported gradually rising price targets.
The $400,000 and $500,000 price targets were eventually raised to $1 million, a target price by 2030 that Wood has repeatedly supported.
Wood said Bitcoin's price could rise if companies put 1% to 10% of their cash balance into Bitcoin, a comment that came after Tesla, Square and other companies added the major cryptocurrency to their balance sheets.
"We're very bullish on Bitcoin in particular," Wood told Benzinga in an interview.
Bitcoin reached an all-time high of $68,789.63 in November 2021 and saw its price drop in 2022 after several major cryptocurrency companies went bankrupt and collapsed.
Despite setbacks in the cryptocurrency industry, Wood has remained positive about the sector in recent interviews.
"Sometimes you have to do combat tests, go through crises, to see the real survivors," Wood told Bloomberg.
In an interview with Yahoo Finance, Wood pointed out that Bitcoin is a safety net for investors.
“Hyperinflation all over the world as their currencies crashed, these populations need a fallback – an insurance policy like bitcoin,” Wood said.
In its latest Big Ideas report, Ark Invest set out several price targets for Bitcoin. The research report compiled by Ark Invest sees Bitcoin hitting 2030 price targets of $258,500 in the bearish forecast, $682,000 in the mid market, and $1.48 million in a bull market.
The Wood and Ark funds remain bullish on Bitcoin and have increased their holdings in many ETFs to coincide with this thesis.
Coinbase global PIECE OF MONEYone of the leading cryptocurrency exchanges, is the main holding of the Next Generation Internet Ark ETFs ARKW and the Ark Fintech Innovation ETF ARKFand is the fourth largest holding company of Ark Innovation ETFs ARKK.
THE Grayscale Bitcoin Trust GBTC is the third largest holding in the Ark Next Generation Internet ETF.
Related link: How to buy bitcoins
Investing $100 in Bitcoin: Here is a look at the value of an investment in Bitcoin today according to various price targets from Wood and Ark Invest.
A $100 investment today could buy 0.0033 BTC based on a price of $48.83 at the time of writing.
If Bitcoin hits $1 million as Wood predicted repeatedly, the $100 investment would be worth $3,300.
Here's a look at the returns under the Big Ideas report's price targets.
- Bear case, $258,500: $100 today would be worth $853.05.
- Base case, $682,000: $100 today would be worth $2,250.60.
- Bull case, $1.48 million: $100 today would be worth $4,884.
Read Next: Cathie Wood Says Bitcoin Will Hit $1 Million - Jim Cramer Says Yes, and I 'Step on Water' in the Sea of Galilee
Photo: Benzinga on YouTube and an AI-generated image on MidJourney.