Despite recent market volatility and outflows, Cathie Wood, founder and CEO of ARK Investment Management, remains firm on her prediction that Bitcoin will reach $1.5 million per coin by 2030.
In a recent interview, Wood discussed investment strategies, the Fed\'s monetary policy, former President Donald Trump\'s stance on crypto, and the future of memecoins.
Wood reaffirmed his bullish outlook on Bitcoin, stating that his firm’s on-chain analysis shows that BTC is still in a bull market. He noted that deregulation in the US will be a key factor in institutional adoption of Bitcoin and other crypto assets.
“We believe asset allocators should consider this new asset class and that incorporating Bitcoin into portfolios will enhance risk-adjusted returns,” Wood said.
When asked about acquisition opportunities during market declines, Wood explained that ARK has been actively buying Tesla and companies with ties to the crypto space, such as Coinbase and Robinhood, which he noted align with his firm’s strategy of capitalizing on disruptive innovation.
Wood predicted the Fed could cut interest rates two or three times this year, citing easing inflationary pressures. He cited low food and gasoline prices, as well as slowing rent increases, as signs that inflation could fall short of expectations.
“We believe the Fed will have much more flexibility in the second half of the year than most expect,” the ARK CEO said, suggesting that economic conditions could prompt additional policy easing.
Discussing the evolving regulatory environment, Wood welcomed Trump’s pro-crypto stance but warned of the risks associated with memecoins. He said some digital assets may retain their value as collectibles, but most memecoins will likely become worthless.
“The SEC has essentially announced that it will not regulate these assets, so investors should proceed with caution,” Wood warned.
Despite the memecoin frenzy, Wood identified Bitcoin, Ethereum and Solana as the most promising cryptocurrencies due to their growing use cases.
He also noted that tokenization is a game changer for capital markets, predicting that traditional investment firms, including ARK, could leverage blockchain technology to increase accessibility to private market investments. He noted that BlackRock CEO Larry Fink’s enthusiasm for tokenization is a sign of the sector’s growing importance.
Touching on the practical applications of crypto, Wood highlighted the growing role of stablecoins in decentralized finance (DeFi) and emerging markets. He noted that in countries experiencing currency devaluation, Bitcoin and stablecoins serve as crucial tools to maintain purchasing power.
*This is not investment advice.