Bitcoin price uptrend was halted near $39,000 after the Federal Reserve announced it will increase the interest rates in March this year. The altcoins, which were also heading north, dropped following the path of flagship currency
Cathie Wood’s ARK Invest has made an incredible prediction for Bitcoin and Ethereum prices. Bitcoin may reach a value of $1 million in 2030, according to their Big Ideas Summit 2022 (BIS 2022) report. Ethereum’s market cap will also skyrocket to $20 trillion in the following decade.
Market Dominance
Analysts at Cathie Wood’s investment management firm, ARK Invest, believe that the two biggest cryptocurrencies will achieve even greater market dominance over the next decade.
Bitcoin might reach a price of nearly $1 million per Bitcoin by 2030, according to the firm’s BIS 2022 research. Ethereum’s market capitalization might also reach $20 trillion in the following decade.
This would put the price of ETH at about $168,000 per ETH. Bitcoin and Ethereum would have a combined market valuation of about $42 trillion at current prices.
While the forecast appears aggressive, analysts at ARK Invest believe it is still prudent. This is because Bitcoin and Ethereum would still constitute a small part of the global asset market at those prices.
They emphasize this by pointing out that the global real estate and bond markets have respective market capitalizations of $220 trillion and $124 trillion. Bitcoin and Ethereum are both likely to reach the $10 trillion gold market cap in this time frame, according to their calculations.
Why Ethereum
ARK Invest is bullish on Ethereum because of its disruptive potential. Smart contracts, which Ethereum pioneered, are beginning to “usurp traditional financial operations at the margin,” according to the asset management, and are poised to “grab a share of the $123 trillion global money supply.”
The hopeful perspective will confront numerous obstacles before becoming a reality. For one thing, crypto has yet to pass regulatory scrutiny. Bitcoin mining is still being blamed for wasting a lot of energy. The Ethereum blockchain, meanwhile, has yet to deliver on its promises of scalability and migration to a proof-of-stake protocol.
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