In the 12 months after its November 2021 peak, the sector shaved off over $2 trillion in value, with Bitcoin in particular down 65% since then. Crypto companies that had become mainstays, including Coinbase and Genesis, began cutting back and laying off staff. A number of crypto companies including Three Arrows Capital and Celsiusfiled for bankruptcy, while the entire industry was rocked in November when FTX, one of the world’s largest crypto exchanges, collapsed and lost over $8 billion in customer funds.

But through it all, Cathie Wood and ARK have held firm on their big Bitcoin bet. Even during the cataclysmic FTX implosion, ARK research director Frank Downing said the firm’s conviction in Bitcoin’s underlying blockchain technology had “only increased” in the wake of the crash. In December, Wood tweeted that the Bitcoin blockchain “didn’t skip a beat” during the FTX debacle, which she took to signify the coin’s transparency and resilience during downtimes.

Over the next seven years, ARK expects Bitcoin to become a “multitrillion-dollar market” because of its strong fundamentals, according to the new report, as the firm expects the crypto asset to outperform “every major asset class over longer time horizons.” The sector’s recent difficulties may even help restore trust in Bitcoin in the long term as exchange companies become more transparent with their finances to avoid a similar fate that befell FTX, ARK argued. Institutional investors including BlackRock and Fidelity have not wavered on their commitment to Bitcoin despite the market downturn, the report also found, reinforcing the coin’s fundamentals.

Even in ARK’s “bear case” scenario, Bitcoin’s value is expected to rise to a record $258,500 by 2030. In the firm’s “base case” scenario, Bitcoin will grow to be worth $682,800.

See the article here: https://fortune.com/2023/02/01/cathie-wood-ark-invest-report-bitcoin-to-hit-1-5-million-by-2030/amp/