If you’re interested in where Crypto can head in 2025, Ark Invest’s new Big Ideas 2025 report is a must-read. It lays out what could come next for cryptocurrency, stubcoin, decentralized finance (DEFI) platforms, and smart contract blockchain networks.
But the really incredible news includes Bitcoin (Cryptography: BTC). As Cathie Wood of Ark Invest points out in a report, Bitcoin is still on track to reach its $1.5 million price target by 2030. portfolio.
It appears that Bitcoin is currently firing on every cylinder. To achieve the price of $100,000 last year was a groundbreaking event not only for Bitcoin, but for the crypto industry as a whole. This is because Bitcoin accounts for an astonishing 60% of the total value of the crypto market. So, when Bitcoin is higher, we are adopting the entire crypto industry.
There are several important factors that will send Bitcoin higher. Of course, one factor is the continued integration of Bitcoin into the global financial system. The fact that the US government is taking seriously the formation of a strategic Bitcoin reserve now tells you everything you need to know.
Another factor involves the healthy foundations of the Bitcoin blockchain. Bitcoin continues to shine on almost every metric. For example, the volume of daily transactions is currently at record levels. The total hashrate (measuring the amount of computing power used) is unprecedented. The number of investors who have held Bitcoin for over three years is also on record.
Bitcoin is also a beneficiary of the expansion of institutional adoption. It has become its own asset class and has become a favorite of hedge fund managers and institutional investors seeking exposure to crypto. As a result of the success of the new spot Bitcoin ETF, the proportion of portfolios that these investors are willing to allocate to Bitcoin continues to increase.
After detailing all of Bitcoin’s achievements in 2024, Kathy Wood offers big news. Bitcoin is still paced to reach a price of $1.5 million by 2030. 58% for the next few years.
For most assets, that type of CAGR is not considered. However, it is not for Bitcoin. Consider that after offering a 150% return in 2023, Bitcoin offered a 122% return last year.
The story continues
Image source: Getty Images.
That being said, it’s worth exploring some of the key assumptions that led to the $1.5 million price forecast. Unlike the typical Pie-in-thesky crypto price forecast, Ark Invest’s forecasts are actually based on some important assumptions about what’s going on within the global economy.
So, for example, to reach the price of $1.5 million, institutional investors will need to allocate 6.5% of their portfolio to Bitcoin. Bitcoin is required to reach a market capitalization equivalent to 60% of the total market value of gold. Bitcoin must account for 10% of the publicly available companies’ corporate finance ministry holdings. Additionally, to allocate 7% of non-monetary holdings to Bitcoin, the Ministry of Treasury is required.
Until 2024, these types of numbers would have sounded strange. However, the Bitcoin ETF then appeared in January last year. As a result, some institutional investors are now steadily ratcheting their allocations to Bitcoin. It is possible to get a 6.5% allocation from the current level, between 1% and 2%, but you may need Bitcoin to continue your incredible returns every year.
Currently, only a small group of publicly available companies hold Bitcoin on their balance sheets. However, the recent success of micro-tactics has transformed into a Bitcoin financing company, creating a whole new story about holding Bitcoin. And the new SEC accounting rules, just in place under the Trump administration, will make it even more appealing for some companies to hold Bitcoin.
Or what about the assumption that the nation-state finance ministry will start to hold Bitcoin? That may have been unthinkable just 12 months ago. However, the US has already begun the process of creating a strategic Bitcoin reserve, with other countries beginning to follow suit. Some speculate that the US might kick off “Bitcoin Arm Race” with countries around the world.
Putting this all together, the long-term future certainly looks bright for Bitcoin. It will be difficult to reach its $1.5 million price target by 2030, but it certainly is within reach, especially given the Trump administration’s current approach to custody.
Whether or not you reach your specific price target on schedule, this digital asset looks like a long-term winner. As long as institutional investors continue to buy Bitcoin, as long as the US continues to create a strategic Bitcoin reserve, it appears that Bitcoin prices have not risen anywhere.
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Dominic Basulto has a position in Bitcoin. Motley Fool has a position and recommends Bitcoin. Motley Fools have a disclosure policy.
Cathie Wood of Ark Invest has provided incredible news for Bitcoin investors.
