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🤯🚀🚀Crazy $2.3 million price prediction for #Bitcoin from Ark Invest
Investment company Ark Invest has published its annual “Big Ideas 2024” report. The most remarkable part of the report was the given Bitcoin target. Accordingly, the company suggested that if Bitcoin accounted for 19.4 percent of global assets, its price could reach $ 2.3 million.
“The optimal portfolio distribution rate for Bitcoin is 19.4 percent”
Within the scope of the study, the returns of various assets, including Bitcoin, gold and stocks, over the past five years were examined in order to see the capital distribution that would maximize the risk-adjusted return. In the review, it was concluded that the most suitable ratio in the portfolio for Bitcoin is 19.4 percent.
Applying this result to a scenario in which the global investable asset base of $ 250 trillion is reorganized, Ark Invest estimated that such a portfolio allocation would increase the price of Bitcoin to $ 2.3 million.
On the other hand, the company emphasized that if the portfolio allocation is 1 percent instead of 19.4 percent, the price can reach 120 thousand dollars.
"everyone who keeps 5 years makes a profit”
The report also highlighted that Bitcoin outperforms all major asset classes such as gold, stocks or real estate in long-term investment returns. It was stated that Bitcoin's compound annual growth rate (CAGR) is 44 percent, which eclipses the average asset class CAGR of 5.7 percent. Moreover, it has been revealed that historically those who have held Bitcoin for at least 5 years have made a profit no matter when they bought it.
Catalysts that can affect the course of Bitcoin
Finally, Ark Invest also drew attention to the four main catalysts that could affect Bitcoin's course this year:
The launch of spot Bitcoin ETFs
Bitcoin block reward halving (halving)
Corporate adoption
Regulatory developments
The report claimed that previous block reward halving paved the way to bull markets, and the upcoming halving may have a similar effect.
