The CEO of ARK Invest Cathie Wood also confirmed the company’s long-term outlook for Bitcoin, showing a starting case of about $750,000 and a bull case of $1,250,000 within the next five years, although critics question how the economy works in the midst of instability and global conflicts.
In a recent interview with Fox BusinessWood spoke about Bitcoin’s role as a financial institution, pushing back against doubts that it has failed to act as an effective hedge in times of global uncertainty.
“Our basic case is close to $750,000. But the case of cattle includes gold instead,” said Wood. “So as the mass transfer of wealth takes place, we think that young people tend to adopt a digital store of value. So that could be Bitcoin.” Most of the wealth in the world they are expected to be passed down from the baby generation to their children and young heirs in the coming decades.
He outlined three primary drivers for ARK’s forecast: the gradual shift to digital assets, Bitcoin’s use as insurance in emerging markets, and accelerating institutionalization.
“The second is Bitcoin is insurance, especially in emerging markets against financial neglect or worse, corruption,” Wood explained. “And as the world’s economy expands, we think people will switch from stablecoins to Bitcoin, which has the potential to grow.”
“But the main reason is institutionalization,” he added, “This is a new class of assets. It has very little correlation with other classes of assets in terms of risks and returns.
Wood’s comments come as Bitcoin faces criticism, including figures like Mark Cuban, who says the stock has “lost the plot” and has not performed well as a hedge in the midst of recent political and economic turmoil. In situations such as market stress linked to international conflicts, Bitcoin has sometimes fallen short of expectations, with gold winning in other sectors.
Wood acknowledged short-term flexibility but highlighted the benefits of long-term design. He also highlighted Bitcoin’s stable policy as a key differentiator.
“21 million units, we’re 20 million units made. Only 1 million left. So there’s a shortage,” Wood said. “Bitcoin is mathematically metered. There will be no response to the supply. It is only mathematical. And right now it is increasing at 0.9% on average per year, the supply is, which is lower than the long term of gold, and in the next two years, we will be under the increase of 0.45% per year. So there is a real shortage that is happening now.”
On the relationship between Bitcoin and gold, Wood noted a historical discrepancy since the interest of the institutions began in 2019. “You will find a very low correlation between gold and Bitcoin, digital gold – a very low correlation, it is 0.14,” he said. “So there’s almost no connection.” He noted recent trends where Bitcoin has shown strength while gold has fallen, tied with a strengthening US dollar.
Recent developments in the global economy also show the growth of Bitcoin as a neutral currency. The reports show Iran has introduced measures to accept Bitcoin payment a through the Strait of Hormuzincluding payment methods for delivery, analysis of the performance of the goods in places where people like sanctions and border situations where the systems are faced with conflicts. The corridor saw more than 20% of the world’s oil flow through it, before the war.
In front of the nation, Wood emphasized that the clarity of the law will accelerate the participation of the organizations. He cited pending US legislation, such as the Clarity Act, as a catalyst.
“I think the Genius Act and soon, hopefully, the Clarity Act, will set the right path for these centers to be successful and organizations,” Wood said. “I think once we do that, because the stakes have risen recently, that we’ll see a lot of systemic change.”
Wood also commented on the availability of Bitcoin and the US dollar, noting the role of stablecoins in increasing the dollar’s influence around the world as Bitcoin takes its appreciation.
Despite the long-term volatility, Wood maintained that the nature of Bitcoin allows it to continue to be adopted by all groups, as younger users are attracted to its properties as a store of value and a medium.
The opinion of the CEO of ARK is in line with the changes of his company, which continues to put gold in the place of digitalization and the movement of organizations as the primary drivers of Bitcoin until 2030.
