Bitcoin (CRYPTO: BTC) has rallied in 2023 with the leading cryptocurrency up 63% year-to-date. There could be more upside for Bitcoin in years to come, with many industry leaders having price targets that are significantly higher than today's price.
Ark Invest CEO Cathie Wood is among the financial experts who see more upside coming in Bitcoin.
Here's a look at how Wood's price prediction could pay off for investors.
What Happened: Over the years, Wood has been a strong believer in Bitcoin and has supported progressively higher price targets.
Her price targets of $400,000 and $500,000 by 2030 were eventually raised to $1 million, a number she's backed multiple times.
Wood said the price of Bitcoin could rise if corporations put 1% to 10% of their cash balance into Bitcoin, a comment that came after Tesla, Square and other companies added the leading cryptocurrency to their balance sheets.
"We are very optimistic about Bitcoin in particular," Wood told Benzinga in an interview.
Bitcoin hit an all-time high of $68,789.63 in November 2021 and saw a decline in its price in 2022 after the bankruptcy and collapse of several major cryptocurrency companies.
Despite setbacks in the crypto sector, Wood has remained positive on the future of digital assets in recent interviews.
"Sometimes you need to battle test, go through crises, to see the real survivors," Wood told Bloomberg.
In an interview with Yahoo Finance, Wood highlighted Bitcoin as a safety net for investors.
"Hyperinflation all over the world as their currencies have fallen apart, those populations need a fallback – an insurance policy like Bitcoin," Wood said.
In its latest Big Ideas report, Ark Invest laid out several price targets for Bitcoin. The research report put together by Ark Invest sees Bitcoin hitting price targets in 2030 of $258,500 in the bearish forecast, $682,000 in an average market, and $1.48 million in a bullish market.
Wood and Ark Funds remain bullish on Bitcoin and have increased their holdings in many ETFs to coincide with this thesis.
Cryptocurrency trading platform Coinbase Global (NASDAQ:COIN) is among the top holdings in the Ark Next Generation Internet ETF (NYSE:ARKW), Ark Fintech Innovation ETF (NYSE:ARKF) and Ark Innovation ETF (NYSE:ARKK).
The Grayscale Bitcoin Trust (OTC:GBTC) is also a top ten holding in the Ark Next Generation Internet ETF.
Investing $100 in Bitcoin: Here's a look at how much an investment in Bitcoin today would be worth under various price targets from Wood and Ark Invest.
A $100 investment today could buy 0.003667 BTC based on a price of $27,266.67 at the time of writing.
If Bitcoin hits $1 million as predicted by Wood several times, the $100 investment would be worth $3,667.
Here's a look at the returns under the price targets from the Big Ideas report.
Bear case, $258,500: $100 today would be worth $947.92.
Base case, $682,000: $100 today would be worth $2,500.89.
Bull case, $1.48 million: $100 today would be worth $5,427.18.
Photo: Benzinga YouTube and MidJourney