Nov 6, 2025
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Cathie Wood Lowers Bitcoin Forecast to $1.2M Due to Stablecoin Rise
Cathie Wood Adjusts Bitcoin Price Prediction
- Cathie Wood, CEO of Ark Invest, has revised her five-year price forecast for Bitcoin from $1.5 million to $1.2 million per coin.
- The adjustment is due to the rapid growth and market share gain of stablecoins, which she believes are overtaking roles initially expected for Bitcoin.
- Stablecoins are gaining traction in developing countries as digital dollars for payments and savings, impacting Bitcoin's projected market role.
- Wood stated, "Given what's happening to stablecoins, we could take maybe $300,000 off that bullish case."
Current Market Context
- Bitcoin is currently trading slightly above $100,000, projecting a potential 1,100% increase over five years to reach $1.2 million.
- This reflects a 220% annual growth rate.
- Since November 1, 2020, Bitcoin has increased by 630%, starting at $13,800.
Stablecoin Expansion
- The stablecoin market cap reached an all-time high above $306 billion, growing 1,350% since November 2020 when it was $21 billion.
- This growth outpaces Bitcoin's performance by 2.14 times during the same period.
- Companies like Google and Cloudflare are expanding into stablecoin applications, highlighting its growing importance in financial ecosystems.
Despite these developments, Cathie Wood maintains that Bitcoin remains a strong hedge against fiat currencies, distinguishing itself from dollar-pegged stablecoins.