Cathie Wood, CEO and Chief Investment Officer of ARK Invest, recently confirmed that the firm keeps its $1.5 million Bitcoin price target intact. According to the executive, liquidity is returning to markets following the end of the US government shutdown, which could signal the beginning of a sustained recovery for risk assets and cryptocurrencies in the short term.
In April, the firm projected this astronomical value for the year 2030 in its most optimistic scenario, also establishing a bearish case of $300,000 per unit. Another $300 billion is expected to return to financial markets over the next five to six weeks, adding to the $70 billion that has already re-entered the system following the normalization of the US Treasury General Account.
On the other hand, the market currently faces the worst November performance in seven years, recording an approximate 17% drop on monthly charts. This occurs even though this month usually offers average historical returns of 41% for the cryptocurrency, which has generated some uncertainty among retail investors who expected a seasonal rally earlier in the cycle.
However, macroeconomic conditions appear to be aligning to favor an imminent trend reversal towards the end of the year. The probability of an interest rate cut has increased significantly, standing at 85% for the Federal Reserve meeting on December 10, suggesting a much more favorable and expansive monetary policy environment for digital assets.
Is the institutional sector ready for a new wave of capital?
Furthermore, the institutional adoption narrative is strengthened by parallel moves in the ecosystem, such as DWF Labs’ new $75 million fund. This institutional phase coincides with Wood’s view on the liquidity squeeze, suggesting that current pressure on the crypto sector and the artificial intelligence economy could ease in the coming weeks as capital flow improves.
Likewise, biotech companies like Enlivex are looking to raise millions to invest in prediction market tokens, validating corporate interest. Although stablecoins have taken away some prominence as a store of value, gold appreciation and the entry of new players reinforce the long-term investment thesis supporting ARK Invest’s million-dollar prediction.
To conclude, the combination of more flexible monetary policies and renewed corporate interest paints a promising future for the leading digital asset. Investors are closely watching December 1, a key date for the end of quantitative tightening and the start of expansion, which could finally trigger the expected rally towards new all-time highs in the coming years.
