Cathie Wood Expects Bitcoin to Rise Above $1 Million by 2030, Cutting Musk's Tesla Holdings

Although the Fed's hawkish attitude toward interest rate cuts drove Bitcoin to slide, industry insiders seemingly remained optimistic about Bitcoin's long-term prospects.

In Thursday's (Dec. 19) interview, Cathie Wood, the founder and CEO of ARK Investment Management LLC (ARK), reiterated her optimism for Bitcoin and predicted its price to exceed $1 million by 2030.

$BTC Bitcoin had rallied to its all-time peak of $108,000. Wood expected deregulation from President-elect Donald Trump's administration to accelerate Bitcoin's rise.

She claimed that because Bitcoin's supply does not rise with the price increase as gold does, Bitcoin is scarcer, signaling that the total supply of Bitcoin will remain at 21 million pieces.

Wood's predictions for Bitcoin and Musk's Tesla are known for being extremely optimistic.

As for Tesla, Wood forecasted that Musk could reduce government spending and industry regulatory obstacles faster by working at the Department of Governmental Efficiency as Musk has first-hand knowledge of the impact of regulatory pressures and hurdles.

Wood also expects a wave of startup acquisitions in the US when the Federal Trade Commission (FTC) unlocks latent merger and acquisition (M&A) demands under Trump’s administration, hence creating liquidity events for venture capitalists.

According to her, the prevention of M&A by the FTC is set to change. The actual value of these startups will be visible to the market as strategic buyers make offers to acquire them.

Otherwise, on Thursday, Wood's Ark made some interesting share transactions, especially the sell-off of Tesla $TSLA. Ark sold 14,016 shares of Tesla in a month when Tesla surged to its record high. Also, it sold 33,402 shares of Palantir $PLTR and some shares of Ionis Pharmaceuticals Inc $IONS. Conversely, it bought shares of Tempus AI Inc. $TEM and shares of Personalis Inc. $PSNL.