ARK Invest CEO Cathie Wood has stated that stablecoins have begun to fulfill functions previously anticipated for Bitcoin, leading her to revise the long-term bull scenario for BTC downwards by approximately $300,000.
During an appearance on CNBC's Squawk Box program, Wood discussed with hosts Andrew Ross Sorkin and Joe Kernen that stablecoins are experiencing rapid scaling, particularly in developing nations.
She explained that in these regions, stablecoins are now serving as a "digital dollar," functioning as both a medium of exchange and a store of value. This is a role that ARK Invest had previously expected Bitcoin to occupy.
“Stablecoins are taking over some of the role we thought Bitcoin would play,” Wood remarked. “Given what’s happening with stablecoins, we can maybe take $300,000 out of our bull case.”
ARK Invest's Bitcoin Price Models
Wood's statement refers to ARK Invest's earlier projections for Bitcoin's price by 2030. The firm had initially set a bull case of $1.5 million. In April, this estimate was increased to $2.4 million following a more aggressive modeling approach. The same report also outlined a base case of $1.2 million and a bear case of $500,000 for Bitcoin.
Bitcoin's Enduring Role
Despite the adjustment, Wood emphasized that Bitcoin continues to function as "digital gold" and remains a fundamental component of the emerging global financial system. She differentiated dollar-pegged stablecoins, which she characterized as representing cash, from Bitcoin, which she views as a holistic asset in its own right.
Wood also pointed out that institutional investors are only beginning to engage with Bitcoin. She highlighted the cryptocurrency's unique position at the intersection of technology, a global monetary system, and a new asset class.