The best cryptocurrencies to buy before they rise 1,477%, according to Cathie Wood

Cathie Wood is closely watched by many investors. Her company, Ark Invest, focuses on disruptive and innovative companies that it believes can record explosive growth. The hope is that this will lead to strong returns for the portfolio.

As a revolutionary store of value it is now a legitimate financial asset attracting a lot of attention. Bitcoin (Bitcoin 1.13%) It’s high on Ark Invest’s radar. And it offers Arc21 Shares Bitcoin ETFwhich has assets of $4.8 billion.

Wood has some high hopes as we look towards the future, as she is known for her incredibly optimistic forecasts. She believes Bitcoin will rise 1,477% from $95,100 (as of the afternoon of December 31) to $1.5 million by 2030.

Whatever you think of this rosy outlook, it is still worth considering buying Bitcoin.

Cathie Wood’s thesis

In a recent interview, Wood stated that if Ark Invest goes up, Bitcoin will reach $1 million to $1.5 million in 2030. The investment firm released its report Big ideas 2024 Report at the beginning of last year. In it, Ark Invest provided details about its vision for Bitcoin and the prospects for cryptocurrencies. I don’t think the thesis has changed since then.

I’m sure Wood and her team believe that Bitcoin will rely on major catalysts from 2024 as we look to the future. release Spot Bitcoin ETFs In January 2024, the floodgates of new capital into digital assets opened. then Bitcoin halving This happened in April, reducing new supply hitting the market.

Ark Invest cited increased institutional adoption as a key driver. In fact, we have seen countries, companies and asset managers turning to Bitcoin. Regulatory progress is also mentioned in the report. The incoming presidential administration has publicly declared its support for Bitcoin. The continuation of these important developments is likely to be reflected in Wood’s price target.

If the price of Bitcoin reaches $1.5 million in 2030, this means that the market value of the digital asset will reach $29.5 trillion. This gain will undoubtedly outperform the broader stock market indices by insanely wide margins.

Moreover, at this valuation, Bitcoin would rival the combined market capitalization of the most dominant technology institutions, as well as the world’s largest economic superpowers. It’s safe to say that Cathie Wood’s outlook is very bullish when viewed in this light.

Long-term time horizon

These types of price targets get a lot of attention. Forecasts are beloved by the investment community because they provide a clear number to focus on and be optimistic about.

However, it is difficult to perform accurately on a consistent basis. This is especially true when looking at something like Bitcoin which can have a lot of things affecting its path, such as investor sentiment, expanding financial ecosystem, regulatory changes, and technological advances.

For the average investor, it is certainly important to understand the variables driving the upside, such as broader adoption and the growth rate of the pre-determined offering. However, it is crucial that you keep your focus on the long term. Bitcoin’s ultimate fate will not be revealed in a quarter, a year, or even five years. This is an asset that should be held for a decade or more.

From this perspective, I think investors should pay attention to the only factor that really matters. The scarcity of Bitcoin cannot be overstated. In a world where governments and their central banks continue to run massive deficits and constantly devalue their fiat currencies, Bitcoin stands out. There will only be 21 million coins, the last of which will be mined in the next century. This fixed supply is attractive to investors looking to park their capital somewhere.

Bitcoin’s ongoing volatility means the best approach is simply… Average cost in dollars A small amount of your savings in it over time. This makes sense as part of a well-diversified portfolio, regardless of whether Cathie Wood’s predictions come to fruition.