Bitcoin, the largest cryptocurrency, is set to surge in the next four years, propelling its market capitalization to $16 trillion by 2030, Ark Invest said in its annual research report, Big Ideas.
The more than 10-fold growth, market cap is currently about $1.5 trillion, will be driven by accelerated institutional adoption and crypto’s evolution into an asset class that features in investment portfolios worldwide, the Cathie Wood-led investment company said. That’s a compound annual rate of roughly 63%.
Bitcoin’s increased popularity will help drive the broader digital asset market to around $28 trillion by the end of the decade, according to the report. It’s currently about $2.7 trillion.
It also means the price could surge: Even if all 21 million BTC were in circulation by then, which they wouldn’t be, one bitcoin would be valued at more than $730,000. Wood has long been bullish on bitcoin.
In January, Ark Invest forecast a price range of $300,000-$1.5 million by 2030. In February, Wood reiterated its appeal as a hedge against inflation and deflation, driven by technological acceleration.
