The bulls are getting more and more arrogant! “Sister Mu” boldly predicts that Bitcoin will rise to $3.8 million

Driven by strong demand for spot Bitcoin ETFs and expectations for the upcoming halving event in April, the price of Bitcoin has risen 44% so far this year, which has boosted the confidence of famous Bitcoin bulls on Wall Street. They believe there is still more room for Bitcoin to rise.

Cathie Wood (Cathie Wood), CEO of Ark Investments and a well-known investor, now anticipates that the price of Bitcoin could rise to $3.8 million.

On Friday, at the Bitcoin Investor Day conference in New York, she said that a large number of institutional adoption and the listing of spot Bitcoin ETFs meant that under a bull market scenario, the target price for Bitcoin was 3.8 million US dollars, which is more than 2 million US dollars higher than her previous forecast.

Wood's Ark Investment Management Company (ARK Invest) released a Bitcoin outlook report in January of this year. It is estimated that by 2030, the price of Bitcoin could reach $1.5 million.

Wood said, “Last year we gave reasons to be bullish on Bitcoin. The SEC finally gave the agency the green light after the backlash. Our analysis is that if institutional investors put a little more than 5% of their portfolios into Bitcoin (we do think they'll do that over time), that alone would increase our initial target price ($1.5 million) by $2.3 million.”

Earlier this year, the SEC approved 11 companies, including BlackRock and Fidelity, to issue spot Bitcoin ETFs, and Ark Investment Management is one of them. Demand for these products has surged since their launch, and inflows into US spot Bitcoin ETFs have reached a record high, while also spurring demand for Bitcoin itself, which directly invests in and holds the token.

Industry veterans also predicted that the Bitcoin halving event, which is expected to occur in April, could cause a supply shock, further driving the current demand-driven rebound.

Wood said at the meeting that she expects the upcoming halving to have a similar impact as before. In 12 months after three halving in 2012, 2016, and 2020, the price of Bitcoin increased by 8069%, 284%, and 559%, respectively.

Wood insisted, “We think Bitcoin still has a long way to go. We are in the initial stages of truly building an Internet-native financial ecosystem and de-intermediation.”

Billionaire Mike Novogratz (Mike Novogratz) also anticipates that Bitcoin will continue to rise, but the reason is that the US government lacks fiscal discipline.

Also in an interview at the Bitcoin Investor Day conference, the Galaxy Digital CEO stated that irresponsible politicians and reckless spending could bring long-term benefits to Bitcoin.

Novogratz said, “What is the macro outlook for Bitcoin? The answer is simple. The government will lose control and won't be able to stop spending money.” He called Trump and Biden the two presidents who destroyed financial stability.

Many commentators have warned that high government spending is a threat because it will speed up already rapid borrowing and could further increase inflation. As US Treasury bonds surpass $34 trillion this year, there are more and more warnings about the government's excessive borrowing.

Bank of America stated earlier this month that Bitcoin investment is rising as a hedge against “debt depreciation” as the US increases its national debt by $100 trillion every day.

Novogratz said that when he first became interested in Bitcoin more than 10 years ago, the price of Bitcoin was less than $100. He went on to point out that Trump increased spending even before the COVID-19 pandemic broke out. After the outbreak of the epidemic, America's deficit rate continued to rise. After Biden took office and introduced a number of new spending plans, the deficit rate rose further. Structural deficits are now normalized, and government spending accounts for more than 25% of GDP.

Novogratz said, “Bitcoin will continue to rise unless you see the Democratic and Republican governments say 'that's enough'. ”