Cathie Wood Adjusts Bitcoin Forecast, Remains Bullish Despite Stablecoin Growth

Amid this week’s crypto market correction, Ark Invest’s CEO and CIO, Cathie Wood, has slashed her 2030 bullish forecast for Bitcoin (BTC), highlighting the global momentum of the stablecoin sector. On Thursday, Wood joined CNBC’s “Squawk Box” to discuss Bitcoin’s price, her thoughts on stablecoins’ growth, and how her previous bullish forecast for the flagship crypto has evolved over the past year. In the interview, Wood underscored that the rapid rise of stablecoins is taking on a role she thought BTC would handle, leading to a 20% reduction of her $1.5 million prediction by 2030. “Stablecoins are usurping part of the role that we thought bitcoin would play,” Wood affirmed, explaining that this shift, particularly in emerging markets and new payment rails for institutions, led to a $300,000 reduction from her bullish case.

The stablecoin sector has seen rapid adoption, especially after the enactment of the GENIUS Act in the US, with other leading jurisdictions like the UK and South Korea pushing for regulatory frameworks. Traditional payment companies, such as Western Union, are also entering the space, with the company announcing plans to launch the US Dollar Payment Token (USDPT) on the Solana blockchain. Wood remarked that “Stablecoins are scaling here much faster than anyone would have expected,” making it a crucial area to watch.

Despite recalibrating her 2030 bull case, Ark Invest’s CEO emphasized that she remains bullish on Bitcoin, noting that growing institutional adoption will be a powerful driver for long-term value. Currently, BTC has declined 20% from its October 6 all-time high of $126,000, briefly falling below the $100,000 mark earlier this week. Nonetheless, most market analysts and investors remain bullish on BTC’s long-term performance. Wood views Bitcoin as “a global monetary system, it is the lead in a new asset class, and it’s a technology, all wrapped in one.” She added that institutional participation is still in its nascent stages, indicating significant growth potential. Wood concluded by affirming that the broader crypto ecosystem is expanding, not contracting, stating, “I think the whole space gets bigger.”

Ethereum Sentiment Turns Bullish Amid Volatility and Rebound Potential

The sentiment around Ethereum ($ETH) is shifting towards bullishness, despite recent volatility. While Ethereum has experienced a significant drop of about 14% over the past week, falling from its ATH of $4,953.73 in August to around $3,325.60, signs of a potential rebound are emerging. A recent rebound near $3,500 sparked bullishness among traders. Crypto research firm Santiment suggests that a true buy signal might emerge when traders temper their expectations of an immediate return to $4K and when bullish sentiment stabilizes.

Despite the short-term dip, the long-term prospects for the market’s second-largest cryptocurrency remain bullish. A stronger $ETH price is expected to signal overall market confidence, which would positively impact Ethereum-based tokens and projects. The article highlights that Ethereum’s bullish turn and potential rebound could fuel investor interest in projects built on its blockchain, positioning them to capture a potential market wave. As more individuals flock to Ethereum and its ecosystem, the increased activity is anticipated to yield significant returns for early investors in ETH-based initiatives.