Despite several flash crashes, market dips, and lengthy consolidation periods, the market’s belief in Bitcoin remains unshaken.
In a recent study report, ARK Invest, an American financial business, predicts that Bitcoin and Ethereum will reach $1 million in value by the end of the decade, with Ethereum valued at $180,000.
Long-term optimism is still present.
Cathie Wood’s investment management business, ARK Invest, has made a bold forecast, saying that the top two cryptocurrencies by market capitalization would continue to dominate in the next decade. According to the firm’s newly released Big Ideas (BIS) 2022 study, Bitcoin’s price might reach $1 million by 2030, while Ethereum’s market value could reach $20 trillion.
According to the study, Bitcoin’s market capitalization might increase by more than 25 times in the next decade, with each BTC worth more than $1 million by 2030. The increased narrative around BTC as a store of value, as well as increased retail and institutional interest in the asset class, could help the coin’s case.
According to the survey, with the launch of more regulated products and acceptance by enterprises and nation-states such as El Salvador, Bitcoin’s institutional holding base looks to be growing. In 2021, Bitcoin’s total transfer volume climbed by 463 percent, surpassing Visa’s payments volume in terms of yearly settlement volume.
Furthermore, despite the fact that the projection may appear ambitious, ARK Invest believes they will be able to meet or exceed these expectations since the values for Bitcoin and Ethereum would still represent a small portion of the total value of global assets. When comparing BTC’s projections to the global real estate and global bond markets, which have market values of $220 trillion and $124 trillion, respectively, the same conclusion may be drawn.
Furthermore, according to the research, the market capitalizations of Bitcoin and Ethereum might reach the $10 trillion gold market capitalization by 2030.
Price still has to be pushed up
Despite ARK Investment’s bold long-term expectations, Bitcoin and Ethereum’s short-term trajectory appeared to be fragile. While Bitcoin appeared to be recovering from previous weekend losses, with near to 15% price rises in the last three days, the price of BTC remained below $40,000.
However, on the strength of the tiny BTC gains, Ethereum gained 12% in one day and was trading at $2,490.24 at press time.
According to Wallet Investor, Bitcoin’s one-year projection was $64,414, which was lower than BTC’s previous all-time high of almost $69,000, while the king coin’s five-year prognosis was $179,383.
With the bigger market remaining turbulent, Bitcoin’s short-term price appreciation prospects appeared to be bleak. However, as BTC’s price rises beyond $50K, the currency may acquire traction quickly in the mid-term.