Ark Invest’s CEO, Cathie Wood, emphasizes bitcoin’s pivotal role in emerging markets, viewing it as a low-risk financial instrument. In a related development, Standard Chartered Bank upgraded its Bitcoin price forecast for 2024 to $150,000, a 50% increase from its previous prediction, as of March 18th. The bank also anticipates Bitcoin could spike to $250,000 in 2025 before stabilizing at around $200,000.
Cathie Wood Labels Bitcoin as a “Financial Super Highway”
Under Cathie Wood’s leadership, Ark Invest has been attentive to Bitcoin’s applications, especially in developing economies. This focus is amidst the global financial environment’s disruption due to the US Federal Reserve’s rate hikes. Wood highlighted these points during a New York conference, pointing out Nigeria as a case where Bitcoin adoption surged due to currency depreciation, showcasing Bitcoin’s dual nature as a risk-on and risk-off asset.
Ark Invest’s Spot Bitcoin ETF, ARKB, is among the ten launched in January, standing out for its success. Wood speculates that Bitcoin’s price could soar past $3.5 million with increased institutional investment, although she refrained from setting a new target, reiterating her earlier $1.5 million forecast.
Standard Chartered’s Revised Bitcoin Forecast
Standard Chartered has revised its Bitcoin forecast, projecting a year-end price of $150,000 for 2024, up from an initial $100,000. The bank suggests Bitcoin might peak at $250,000 next year, eventually finding a baseline at $200,000. This revision draws parallels between Bitcoin’s trajectory and gold’s market behavior following the introduction of gold ETFs in the US.
The analysis by Standard Chartered suggests that Bitcoin’s integration into portfolios, akin to gold, and potential ETF inflows reaching $75 billion could propel its value to $250,000 by 2025. This optimistic outlook underscores the evolving perception of Bitcoin as a significant asset in the global financial landscape, with its current trading price hovering around $63,000, down from $73,000 at the month’s start.
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