![[Bitop Review] Cathie Wood Lowers Bitcoin Target Price by $300,000: Stablecoins Have Replaced Some of BTC's Roles](/api/image-proxy?url=https%3A%2F%2Facademy-public.coinmarketcap.com%2Fsrd-optimized-uploads%2Fc17756b8e93e4293aa4e52eadd6716eb.jpg)
Bitcoin has long been regarded as digital gold against inflation, but it now faces unprecedented challenges. Ark Investment CEO Cathie Wood stated on November 6 that the expansion of stablecoins is happening faster than anyone imagined, forcing her to lower her 2030 Bitcoin price prediction from $1.5 million to $1.2 million. Wood added that stablecoins "have already replaced some roles that we originally thought Bitcoin would play," dropping a bombshell on the market.
Stablecoins Are Rapidly Gaining Ground
Wood's adjustment is not a minor revision but is pressured by the stablecoin sector, whose total market cap has exceeded $300 billion. This figure comes from DeFiLlama, representing a doubling in growth over two years. In a public interview, she added that Ark Investment still believes Bitcoin is part of the global monetary system, but stablecoins are taking over the cash domain.
Investors are flocking to tokens pegged 1:1 to the US dollar for payments, settlements, and remittances, compressing the space originally hoped for Bitcoin's expanded circulation. Even Wood, who has long been bullish on Bitcoin, had to concede a $300,000 expectation.
Emerging Markets Find a Safe Haven in Stablecoins
The most eye-catching growth stage for stablecoins is in Latin America. Venezuela's 2025 annual inflation rate is as high as 269%, with the bolivar (Venezuela's fiat currency) depreciating daily, leading residents to turn to USDT for everyday transactions. Stablecoins account for half of legal foreign exchange inflows and are even used by the government for oil trades to bypass sanctions. Chainalysis tracking also shows that between 2022 and 2024, more than half of the cryptocurrency value received in Latin America was stablecoins. Standard Chartered further estimates that by 2028, stablecoins could bring $1 trillion in funds from traditional banking systems onto the chain, indicating that this momentum has become a structural shift.
The Complementary Roles of Bitcoin and Stablecoins
Despite the surge in stablecoin usage, Bitcoin still holds two trump cards: "scarcity" and "decentralization." Its fixed supply and resistance to censorship make it the ultimate safe in extreme environments. For startups in Latin America and Africa, Bitcoin can be used to lock in long-term value, while stablecoins handle payroll, procurement, and cross-border transfers, forming a functional division rather than zero-sum competition. However, stablecoins rely on issuers' reserves, with solvency and compliance risks that cannot be ignored; Bitcoin's sharp price volatility also often deters conservative users, highlighting the need for different products in the crypto world to complement each other.
Future Outlook: Regulation and Market Evolution
In the face of surging private demand, the Venezuelan government plans to launch an integrated crypto banking service incorporating USDT and Bitcoin by the end of the year, hoping to enhance financial inclusion while maintaining monetary sovereignty. Wood's downward revision reminds investors that the market's focus is shifting from value storage to "on-chain dollars." In the future, how regulatory bodies in various countries define the status of stablecoins, require transparency from issuers, and whether Bitcoin can hold onto its scarcity narrative will all influence the next steps in the crypto asset ecosystem.
Bitcoin and stablecoins orbit like binary stars: one locks in long-term faith with scarcity, while the other carries everyday transactions with stability. Cathie Wood's adjustment is not a bearish signal but a reflection of the shifting positions in growing sectors. At this moment when global funds are seeking outlets, observing how the two reallocate roles will be key to understanding the future financial landscape.