Ark Invest CEO Cathie Wood, a prominent supporter of Bitcoin, has adjusted her long-term price projection for the cryptocurrency downward by $300,000. She identified the rapid expansion of stablecoins as a significant factor influencing the evolving cryptocurrency landscape.
During an interview with CNBC on Thursday, Wood stated her revised expectation for Bitcoin to reach $1.2 million by 2030, a decrease from her previous prediction of $1.5 million. This adjustment is attributed to stablecoins increasingly fulfilling roles that Wood had initially anticipated Bitcoin would occupy.
Stablecoins Gaining Traction in Real-World Applications
Wood elaborated that stablecoins, which are digital assets pegged to fiat currencies like the U.S. dollar, are seeing increased usage in emerging markets for transactions, savings, and cross-border payments.
“Stablecoins are usurping part of the role that we thought Bitcoin would play,” she remarked. “Stablecoins are scaling here, I think, much faster than anyone would have expected.”
Initially conceived as a pathway for crypto traders, stablecoins such as Tether (USDT) and USD Coin (USDC) have developed into crucial financial instruments in regions facing economic challenges, including inflation, sanctions, or limited access to traditional banking services.
In countries like Venezuela and Argentina, where local currencies continue to depreciate, individuals are turning to stablecoins to preserve their purchasing power and circumvent strict currency controls.
A 2025 report from Standard Chartered Bank projected that dollar-pegged stablecoins could draw over $1 trillion from conventional banking systems in developing nations by 2028.
This growing adoption is prompting analysts, including strong proponents of Bitcoin, to re-evaluate the cryptocurrency's long-term viability as a medium of exchange.
Global Stablecoin Growth Accelerates Amidst U.S. Regulation
The global stablecoin movement received a significant boost in legitimacy in July when U.S. President Donald Trump signed the GENIUS Act into law. This legislation established the first federal framework for issuing and trading stablecoins within the United States.
The new law has paved the way for banks, major corporations like Meta and Amazon, and even U.S. states to explore the implementation of blockchain-based payment systems.
As institutional interest grows, stablecoins are transitioning from being perceived merely as digital dollar equivalents to becoming an integral component of the evolving financial system.
Bitcoin's Role as "Digital Gold" Persists
Despite reducing her price forecast, Wood remains optimistic about Bitcoin's future, describing it as a "global monetary system" and a modern store of value comparable to gold.
She continues to anticipate that the cryptocurrency will capture at least half of the gold market's valuation, estimated at $14 trillion, driven by institutional adoption and its growing recognition as a hedge against monetary inflation.
Bitcoin's recent market performance indicates a dynamic influenced by both innovation and uncertainty. As of Friday, Bitcoin was trading at $101,565, according to CoinMarketCap. This represents a decline of over 19% from its October all-time high of $126,080. The price briefly fell below the $100,000 mark earlier in the week, the first time in six months, a movement attributed to macroeconomic pressures and tightening liquidity.
Other Analysts Also Adopting a Cautious Stance
Wood's revised price target aligns with a broader shift in sentiment among Bitcoin supporters. Earlier this week, Galaxy Digital revised its own 2025 Bitcoin target from $185,000 down to $120,000, characterizing this period as a new "maturity era" for Bitcoin marked by institutional engagement, regulatory clarity, and reduced volatility.
However, not all investors are tempering their expectations. Notable Bitcoin advocates Michael Saylor of MicroStrategy and Robert Kiyosaki, author of Rich Dad Poor Dad, have both recently predicted that Bitcoin could reach $150,000 to $200,000 by the end of 2025.
Their optimism is fueled by increasing institutional accumulation and ETF inflows, coupled with Bitcoin's fixed supply, which remains attractive to individuals concerned about the inflationary nature of fiat currencies.
Bitcoin and Stablecoins Reshaping the Future of Finance
Wood's revised forecast signifies a notable shift in the cryptocurrency narrative. While Bitcoin continues to be recognized as a leading digital store of value, stablecoins are emerging as increasingly popular instruments for real-world financial transactions, particularly in developing economies.
This dual growth trajectory suggests an expansion rather than a contraction of the crypto ecosystem. Bitcoin's future may increasingly focus on wealth preservation, while stablecoins could lead the digital payments revolution globally.
As Wood aptly summarized, “I think the whole space gets bigger. This is, you know, a global monetary system really going digital without government oversight, very private. So it’s a very big idea.”
With Bitcoin continuing to trade in the six-figure range and stablecoins actively transforming the global economy, Wood's recalibration serves as an indicator that even the most dedicated cryptocurrency proponents are adapting to a rapidly evolving digital economy.