In its research report titled “Big Ideas 2023”, ARK Invest is of the opinion that despite the setback, public blockchains continue to encourage many innovations, one of which is Bitcoin (BTC).
ARK is of the opinion that Bitcoin’s fundamentals are solid despite a turbulent 2022. According to the company, it expects the price to rise to $1 million in the next 10 years.
The spread caused by central counterparties has raised Bitcoin’s value propositions. Issues such as decentralization, auditability and transparency have become quite strong. The fundamentals of the network have strengthened and investors are starting to focus more on the long-term.
ARK backs up this claim by pointing to addresses with higher hashrate, long-term owner supply, and non-zero balance compared to previous downturns.
ARK says that due to the underlying robustness, Bitcoin continues to outperform traditional asset classes.
On a five-year CAGR basis, global equities rose 6.1%, global debt yielded 1.4% and gold rose 2.2%, while bitcoin rose 272% on average.
CEO Katie WoodThis is not the first time that crypto has made such bold predictions about the upward trajectory. In May 2021, Wood made his first bold price prediction during an interview with Bloomberg, predicting that Bitcoin would hit $500,000 by 2026. It later increased that figure to $1 million by 2030 in early 2022.
ARK has also been highly bullish on Coinbase (COIN) over the past December and January, continuing to expand its COIN position by purchasing approximately $30 million worth of shares.