(Bloomberg) – Ark Investment Management analyst Yassine Elmandjra stands by his firm’s prediction that the price of Bitcoin will cross the $1 million mark, despite the digital currency selling off this year.
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Cathie Wood, the fund manager behind Ark’s flagship innovation-themed ETFs, predicted earlier this year that the world’s largest cryptocurrency would surpass $1 million per coin by 2030. Yet coin holders and miners sold off the token en masse in 2022 as the Federal Reserve continues to aggressively tighten monetary policy, steering investors away from riskier asset classes, such as crypto.
The flagship virtual currency is down nearly 60% to around $19,000 this year, according to data from Bloomberg.
Still, crypto analyst Ark Elmandjra said there is still a significant opportunity to be found in Bitcoin, in an interview with Bloomberg TV on Tuesday, reiterating his firm’s view on every coin surpassing $1 million. in the years to come.
“When we look at Bitcoin’s potential, we segment it into several use cases – everything from competing as a store of digital value, to a settlement network, to an insurance policy against arbitrary seizure of assets,” he explained. “When you stack each use case on top of each other, you get an opportunity of around $28 trillion, which translates to over $1 million per bitcoin.”
Despite this, the company ceded its place as the third-largest shareholder in U.S. crypto platform Coinbase Global Inc. over the summer, dropping some of its stakes amid a U.S. Securities and Exchange Commission investigation. Three Ark Investment Management LLC funds sold more than 1.41 million shares by the end of July, worth $75 million at the time.
Ark’s $7.1 billion Innovation ETF (ticker ARKK) did not have a good year, lingering near its lowest closing level since March 2020 on Tuesday. The fund has plunged 62% in 2022 as global risk sentiment deteriorates, compared to a 24% drop in the S&P 500.
Elmandjra’s long-term view on Bitcoin nonetheless remains optimistic.
“When you look at bitcoin as a strategic asset, a non-sovereign, censorship-resistant currency, competing with central banks and fiat currencies, with bitcoin’s supply capped at 21 million, I think there’s a arms race – especially as we move from the digital to the physical world – to be an asset independent of traditional financial systems and traditional asset classes,” he said in the TV interview.
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