In a recent interview on CNBC, Cathie Wood, CEO of ARK Invest, shared an optimistic outlook on Bitcoin’s future, projecting a potential price surge to $1.5 million by 2030. This revised forecast represents a 50% increase from Wood’s earlier prediction of $1 million for the same period. Wood attributed this heightened optimism to the recent approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), marking a significant milestone after a decade of attempts.
“We think the probability of the bull case has increased with this SEC approval. This is a green light,” remarked Wood during the CNBC interview. The approval of spot Bitcoin ETFs on Wednesday has been viewed as a positive development, reinforcing the bullish sentiment around the leading cryptocurrency.
Wood outlined different scenarios, presenting a bear case with a price of $258,500 and a base case projecting a value of $682,800. ARK Invest’s earlier $1 million prediction was substantiated by factors such as a higher hashrate, long-term holder supply, and addresses with non-zero balances compared to previous market downturns. The recent SEC approval is perceived to have further bolstered the overall bullish thesis.
Glassnode’s Insights Into Bitcoin’s New Paradigm
Meanwhile, a recent X thread by Glassnode delved into the broader implications of the SEC’s approval. The thread emphasized the new paradigm for the Bitcoin asset class, with 11 spot Bitcoin ETFs receiving regulatory clearance. Key metrics, such as the Bitcoin Hash Rate reaching an all-time high of over 600 EH/s and on-chain volume exceeding $5.7 billion per day, underscored the network’s robustness and growing economic activity.
Exchange flows, recording $4.6 billion in daily Inflows/Outflows, highlighted a surge in investor activity. Futures Open Interest stood at $17.6 billion, a figure that has only been surpassed during the 2021 rounded top and subsequent all-time high. Notably, a positive shift was observed in the collateral structure for Futures Contracts, with only 21.8% of Open Interest using Crypto-Margined collateral.
Despite the impressive metrics, HODLing, or long-term holding of Bitcoin, remains a dominant market dynamic. The data indicated that higher prices are necessary for a comprehensive distribution among mature investors to incentivize them to part with their coins. The Realized Cap, at $438 billion, highlighted the influx of capital into the Bitcoin market, signaling a positive trajectory amidst increasing demand.
Related Reading | Solana’s Resilience: Bouncing Back To $100