Investment firm Ark Invest published its latest Big Ideas report on Wednesday, outlining a pathway for Bitcoin to hit $2.3m.
Ark’s Brett Winton wrote that for the best returns over 5 years, keeping 0.5% of one’s investments in Bitcoin would have been ideal. On average, allocating about 4.8% to Bitcoin would have worked well.
Ark Invest released the Big Ideas 2024 report: The optimal allocation proportion of Bitcoin in the investment portfolio in 2023 is 19.4%, while it was only 0.5% in 2015; globally, if 1% is allocated to Bitcoin, the price potential of Bitcoin reaches $120,000, 19.4% is allocated,…
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The report further stated that in 2023, allocating around 19.4% in Bitcoin would have been the optimal choice. Also, the price would be greatly influenced if a substantial portion of the $250 trillion global investable assets were invested in Bitcoin.
If people worldwide were to invest just 1% in Bitcoin, its price could reach $120,000. However, if a higher allocation of 19.4% were made — the price could soar to $2.3m, Ark said.
Ark’s “Big Ideas” is an annual document outlining its perspective on emerging technologies and trends that could influence the future.
Last year, the report showed how Bitcoin expanded its role as a worldwide settlement network, with its 2021 settlement volume exceeding Visa’s for the first time.
Ark Highlights Bitcoin’s Bullish Potential
Wednesday’s report also discussed Bitcoin’s rebound from difficulties in 2022. In 2023, Bitcoin’s price saw a significant increase of 155%.
Noteworthy events in 2023 include record-breaking Bitcoin transactions, Ripple’s legal victory against the SEC, and PayPal’s introduction of a USD stablecoin.
Ark noted that early last year Bitcoin surged by over 40% year when regional banks such as Silicon Valley collapsed. This highlighted Bitcoin’s function as a safeguard against counterparty risk.
Additionally, it indicated that Bitcoin exceeded its on-chain market average. Such a milestone hadn’t been achieved in about 4 years.
“Historically, when the price of Bitcoin crosses above the market mean, it typically indicates the early stages of a bull market,” Ark said.
The firm also stated that Bitcoin is transforming into a dependable risk-off asset, typically seen as a haven during periods of market turmoil.
Ark Sees Bitcoin as a Top Safe Haven Investment
Ark CEO Cathie Wood is well-known for her strong advocacy of Bitcoin. The firm she heads holds one of the recently approved spot Bitcoin ETFs.
She recently called Bitcoin “one of the most important investments of our lifetimes,” emphasizing its worldwide, rule-based financial system. “We think it’s the biggest of all the crypto ideas out there,” she added.
