Bitcoin holders experienced a sudden drop in value this week, with the cryptocurrency’s price plummeting from $108,364 on Tuesday, December 17th, to $95,537 on Thursday, marking its most significant consecutive downturn since August.
The recent bearish movement was potentially triggered by comments made by Jerome Powell, the Chairman of the U.S Federal Reserve, and worsened by speculations surrounding possible rate cuts in 2025.
While some investors reacted to this news by selling off their holdings, causing a surge in fear, uncertainty, and doubt (FUD), others remained optimistic. However, the overall bullish sentiment has been dampened, especially amidst the holiday season where investors typically withdraw funds for seasonal expenses.
Notwithstanding the prevailing negative market sentiment indicated by the Fear and Greed index, there are still proponents of a positive outlook, including Cathy Wood, the CEO of Ark Invest, who maintains her belief in Bitcoin’s potential to reach $1 million per coin.
Cathy Wood remains committed to her forecast of Bitcoin hitting $1 million by 2030
Well-known for her strong support of Bitcoin, Cathy Wood reiterated her bold prediction in a recent interview with Bloomberg. Wood envisions Bitcoin reaching a valuation ranging between $1 million and $1.5 million by the year 2030.
She highlighted the conducive regulatory environment that has facilitated and is expected to continue driving institutional adoption. Additionally, Wood emphasized the scarcity of Bitcoin as a key factor that will attract more institutional investors over time.
Wood also pointed out the technological aspects that make Bitcoin appealing beyond its speculative value, particularly its status as a digital currency backed by a secure global network.
The recent Bitcoin halving, which occurred earlier this year, played a crucial role in institutional adoption as it reduced Bitcoin’s annual supply growth to below that of gold.
Wood anticipates that this change will enhance Bitcoin’s appeal among institutional players, solidifying its position as a digital asset for wealth preservation. She believes that a combination of these factors will drive increased adoption and sustain a long-term upward trend for Bitcoin.
Despite short-term fluctuations expected in the market, the recent downturn could present an opportunity for investors to acquire Bitcoin at prices below $100,000.