According to Ark Invest's annual research report, Big Ideas, the market capitalization of bitcoin, currently valued at $1.5 trillion, is expected to skyrocket to $16 trillion by 2030. This substantial growth of over 10-fold will be fueled by the accelerated adoption of bitcoin by institutions and its evolution into a recognized asset class in investment portfolios globally.
The report forecasts a compound annual growth rate of approximately 63%. As a result, the price of one bitcoin could exceed $730,000, even if all 21 million BTC were in circulation.
The report also suggests that the broader digital asset market will expand to around $28 trillion by the end of the decade, driven by bitcoin's increasing popularity. Ark Invest's CEO, Cathie Wood, has consistently been optimistic about bitcoin's potential, predicting a price range of $300,000 to $1.5 million by 2030. The report highlights the growing institutional ownership of bitcoin, with U.S.
ETFs and public companies holding around 12% of the total bitcoin supply at the end of last year. This shift in perception, from bitcoin being viewed as a speculative asset to being considered 'digital gold,' is expected to contribute significantly to its growth.
Even a modest 2.5% penetration into institutional holdings could add approximately $5 trillion to bitcoin's total valuation. Furthermore, the report predicts that bitcoin will capture an estimated 40% of gold's total market value, implying an additional $10 trillion in potential upside.