Amid this week’s crypto market correction, Ark Invest CEO and CIO Katie Wood revised down her bullish forecast for Bitcoin (BTC) in 2030, highlighting the global momentum in the stablecoin sector.
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Stablecoins will take over some of the role of BTC
On Thursday, Ark Invest CEO Cathie Wood appeared on CNBC’s “Squawk Box” to discuss the price of Bitcoin, her thoughts on stablecoin growth, and how her previously bullish predictions for the flagship cryptocurrency have changed over the past year.
In the interview, Wood emphasized that the rapid rise of stablecoins is taking on the role she thought BTC would fill, resulting in a 20% drop in her $1.5 million forecast by 2030. Notably, the investment management firm has previously asserted that major cryptocurrencies have the potential to function as a store of value and a global payment system.
“Stablecoins are taking away some of the role we thought Bitcoin would play,” Wood asserted Thursday morning. “Given what’s going on with stablecoins serving emerging markets in the way that Bitcoin is expected to, I think stablecoins alone can probably take out $300,000 from that bull case.”
“Emerging markets are huge in this regard,” he said, adding, “American financial institutions are starting to look at new payment methods, with stablecoins at the core. That’s a very interesting development.”
Notably, following the enactment of the GENIUS Act in the United States, we have seen rapid adoption in this area, with other major jurisdictions, including the United Kingdom and South Korea, also pushing to establish their own regulatory frameworks in the coming months.
Similarly, several leading players in traditional payment systems are preparing to make strategic moves into the stablecoin space. Last week, global financial services company Western Union announced plans to launch the US Dollar Payment Token (USDPT) on the Solana blockchain.
“Stablecoins are expanding here much faster than anyone anticipated, making them an area to watch going forward,” Wood said.
Wood remains bullish on Bitcoin
Ark Invest’s CEO emphasized that he remains bullish on Bitcoin despite resetting the 2030 bull market, noting that increasing institutional adoption will be a strong driver of long-term value.
The flagship cryptocurrency is currently down 20% from its all-time high (ATH) of $126,000 on October 6, and briefly dipped below the $100,000 level earlier this week. Despite this, most market analysts and investors remain bullish on BTC’s long-term performance.
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“Bitcoin is a global monetary system, a usher in a new asset class, and a technology all rolled into one,” Wood said. He added that institutions’ participation in this field is still in its infancy: “Institutions are just really getting into this space. We’re just getting started, so we have a long way to go.”
The CEO concluded his observations by asserting that the broader cryptocurrency ecosystem is expanding, not shrinking. “I think the whole space will be bigger,” she concluded.
Featured image from Unsplash.com, chart from TradingView.com