Ark Invest founder Cathie Wood, known as the “female stock god,” made a new prediction that Trump’s presidency will spark a wave of mergers and acquisitions of new companies and reiterated her belief that Bitcoin will surpass $1 million by 2030.
In an interview with Bloomberg today, Cathie Wood stated that Trump’s election will trigger a wave of mergers and acquisitions of private companies that had been delayed due to cumbersome procedures. The changes at the Federal Trade Commission (FTC) will unleash potential merger demand and create “liquidity events” for venture capital investors:
“The FTC has been hindering the progress of mergers, but this situation will change. As strategic buyers bid for these innovative companies, we will ultimately see price discovery and the true value of these companies.”
Reaffirming the bullish outlook on Bitcoin exceeding $1 million
Cathie Wood also reiterated her bullish scenario prediction for Bitcoin, suggesting that the price of Bitcoin could exceed $1 million by 2030. Under Trump’s leadership, relaxed regulations will accelerate the growth of Bitcoin, supported by supply-demand dynamics as the total Bitcoin supply is limited to 21 million:
“Bitcoin is becoming rarer than gold. The difference between gold and Bitcoin is that when the price of gold rises, production increases, and the supply growth rate increases, but this is not the case with Bitcoin.”
It is worth noting that Ark Invest’s predictions for Bitcoin have changed multiple times. In February 2023, Ark Invest released a report predicting three scenarios for Bitcoin prices, with the “base scenario” estimating Bitcoin to reach $682,800 by 2030, the “bear market scenario” estimating a price of $258,500, and the “bull market scenario” expecting Bitcoin to rise to $1.48 million. In March of this year, after the approval of the Bitcoin spot ETF, Cathie Wood stated that the initial target of $1 million by 2030 was too conservative and raised the target price to $1.5 million. Furthermore, if institutional investors allocate slightly more than 5% of their portfolios to Bitcoin, the target price for Bitcoin in 2030 could rise to $3.8 million.
In addition, Cathie Wood predicts that Tesla CEO Musk’s efforts to reduce the size and scope of the government in the Department of Government Efficiency (DOGE) will be effective, as he is well aware of the impact of regulatory pressures and barriers:
“He is well aware that if these barriers can be removed, the speed at which he changes the world will be faster than it is now.”
After Trump’s election last month, it was announced that Musk and American biotech entrepreneur Vivek Ramaswamy would jointly lead the DOGE department, paving the way for dismantling government bureaucracies, reducing unnecessary regulations and wasteful spending, and restructuring federal agencies.
