Cathie Wood, ultra-bullish bet on Bitcoin to $1.25 million... "Era of trading instead of gold is coming"

▲ Gold, Bitcoin (BTC)

Cathie Wood has once again pushed her forecast for Bitcoin (BTC) to $1.25 million, presenting an ultra-bullish argument that younger generations' demand for inflation hedging will shift from gold to Bitcoin.

According to financial information firm Barchart on May 30 (local time), ARK Invest CEO Cathie Wood believes Bitcoin could rise to $1.25 million per token. ARK Invest's Big Ideas 2026 Report suggested that Bitcoin's market cap could expand from approximately $2 trillion to $16 trillion.

Wood's core argument lies in generational change. Barchart reported that Wood maintains the view that younger generations will choose Bitcoin over gold to escape inflation. Wood has previously stated that about 25% of her personal assets are linked to digital gold, but she has never disclosed the extent of Bitcoin held by ARK Invest or in her own name.

Wood's initial Bitcoin purchase dates back to 2015. At that time, Bitcoin was trading around $250, and Wood and the ARK Invest team were preparing a white paper with economist Art Laffer to examine whether Bitcoin could fulfill the three functions of money: a medium of exchange, a store of value, and a unit of account.

Laffer commented that the U.S. had been waiting for an asset like Bitcoin since abandoning the gold standard in 1971. When Wood asked about the size of the opportunity, Laffer compared the U.S. monetary base of $4.5 trillion at the time with Bitcoin's network value of $6 billion. Barchart explained that this overwhelming asymmetry led to Wood's personal investment decision.

However, the short-term environment is not as favorable as Wood's optimism. Barchart pointed out that Bitcoin has fallen by more than 16% this year, and significant ETF outflows have also been a burden. The ongoing Middle East conflict, rising inflation, and weakening expectations for a Fed rate cut have kept investors flocking to gold, further suggesting that it will take more time for Bitcoin to replace gold as a safe-haven asset.

Barchart assessed that following Wood's forecast directly could be risky for tactical investors. However, it could be an opportunity for long-term investors who haven't been able to increase their Bitcoin exposure due to high prices. The limited total supply of Bitcoin at 21,000,000 BTC and the potential recovery of ETF fund flows support the judgment that Bitcoin remains a portfolio diversification asset.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*