ARK Invest Projects Bitcoin Could Reach Up to $2.4 Million by 2030
Falling bitcoin exchange balances indicate strong holder sentiment as bitcoin trades around $94,000.
What It Is:
- ARK Invest’s updated price target for bitcoin by 2030 varies from $500,000 to $2.4 million, reflecting assumptions on active supply and institutional adoption.
- The rise of Bitcoin to approximately $93,000 is bolstered by decreasing exchange balances, with data reflecting a drop from 3 million BTC in November to 2.6 million BTC.
ARK Invest has elevated its decade-end projection for Bitcoin (BTC) to as much as $2.4 million per coin after re-evaluating its assumptions regarding active supply, excluding lost or long-held coins. The leading cryptocurrency is currently trading near $94,000.
The bullish scenario shows a price expectation 60% higher than its January 2024 estimate, indicating a 72% compound annual growth rate (CAGR) from the end of 2023 to 2030. The base case predicts BTC at $1.2 million, reflecting a 53% CAGR; while the bear case estimates put it at $500,000, equating to a 32% CAGR.
David Puell, an analyst at ARK Invest led by Cathie Wood, based his model on the total addressable market and potential market penetration across various sectors, including institutional investments and Bitcoin’s function as “digital gold.”
In November, Puell predicted Bitcoin could reach between $104,000 and $124,000 by year-end. Bitcoin finished December at $93,440 before attaining a record high of $109,000 in January, subsequently dipping to lows near $74,500 earlier this month.
The recent bullish trend is partly due to dwindling exchange balances, signaling that more Bitcoin is being transferred into personal wallets, indicating a trend of long-term holders. Data from Glassnode reports that the amount of Bitcoin held on exchanges has decreased from about 3 million in November 2024 to 2.6 million, enhancing optimistic sentiment regarding this cryptocurrency.
