The crypto market is preparing to soar, according to many famous investors. For example, ARK Invest founder Cathie Wood sees a bull-case price point of $1.5 million per Bitcoin (CRYPTO: BTC) in 2030. That would be a 2,276% return from today's price, or a compound annual growth rate (CAGR) of 70% for six years.
That's Wood's most optimistic forecast, but even her bottom-end projections call for a $650,000 Bitcoin price by the end of this decade. Plenty of billionaires are building positions in this promising digital asset these days, hoping to capture the crypto's long-term wealth creation at an early stage.
Let's look at Cathie Wood's rationale for these ultra-bullish price targets, and what these arguments could mean for us ordinary non-billionaires.
Wood's bullish analysis
Wood doubled down on her million-dollar price targets for Bitcoin in a recent video interview with Peter Diamandis, founder of the XPRIZE Foundation, which promotes innovation. Her bullish argument centered around three core themes:
Thanks to Bitcoin's planned scarcity with a hard cap of 21 million digital coins, it should eventually replace physical gold as a store of long-term value.
Institutional investors have not yet entered the market for the digital coin, despite the appearance of exchange-traded funds (ETFs) based on real-time crypto prices. When investment banks and financial advisors start taking the Bitcoin plunge, the whole industry should "fall in line pretty quick" with price-boosting results, Wood said.
Investors should see Bitcoin as an "insurance policy" against several financial risks like inflation, economic instability, or government overreach. These qualities should gain exposure and a following, especially in younger generations.
Together, she expects these pillars to support strong price growth.
"If we're in the middle of the bull market, I think the next spur is going to be the platforms putting the spot Bitcoin ETF on it," Wood said. "And I do think that will happen this year."
