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Cathie Wood gained fame after the Ark Innovation ETF excelled following the stock market crash caused by COVID-19 in 2020.
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Recently, a report from Wood’s Ark Invest predicts Bitcoin could reach $2.4 million per token by 2030.
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However, several challenges facing crypto’s digital gold suggest a 50% drop is more plausible than a 2,200% surge by the decade’s end.
On Wall Street, optimism is common. Historical data shows that not all stocks appreciate in value over time, but there is a significant gap in analysts’ positive and negative evaluations. Currently, 56% of analyst ratings for S&P 500 companies are classified as “buy,” according to Barron’s, with just 6% falling on the sell side as of February.
Though these ratings aren’t always reliable, they provide investors with insight into how institutional analysts regard a company or major U.S. businesses.
Occasionally, an analyst’s price target vastly exceeds the existing price of a security, grabbing investors’ attention. Just over five weeks ago, a prominent Wall Street figure forecasted a bullish outcome that would see cryptocurrency values rise by nearly 2,200% by 2030. Despite the optimistic arguments in the report, it seems more plausible that Bitcoin might lose more than half of its value instead.
Cathie Wood, CEO of Ark Invest, became well-known after the COVID-19 stock market recovery, primarily due to her focus on innovative companies and cryptocurrencies, leading to impressive returns for the Ark Innovation ETF.
Previously, she estimated Bitcoin could reach $1.5 million per token by 2027, but she has now adjusted this outlook to $2.4 million in five years, reflecting a potential rise of nearly 2,200% based on current valuations.
