In February, Bitcoin (CRYPTO: BTC) surpassed $50,000 for the first time since December 2021. The cryptocurrency has risen by 120% in the last year as economic confidence has led to a shift toward risk assets. Recently, the approval of spot Bitcoin exchange-traded funds has led to the price appreciation.
However, Cathie Wood of Ark Invest believes Bitcoin will rise significantly. Ark analysts have projected a bull-case price target of $1.48 million by 2030, representing a 2,860% increase from the current price. Should that projection be correct, $10,000 invested in Bitcoin now would be worth around $296,000 by the end of the decade.
Here’s everything investors need to know about this cryptocurrency.
Bitcoin has provided greater returns than other asset types. Bitcoin has been an excellent investment during the previous five years. In reality, investors would have struggled to find a better site to invest their money. From January 2019 to January 2024, the cryptocurrency returned 1,140%, compounding at a rate of 65% each year.
This enormous growth clearly outpaces other main asset types. According to Morgan Stanley, within the same five-year period, commodities returned 5.4% yearly, emerging market stocks returned 1.4% annually, the S&P 500 returned 14.3% annually, US fixed income returned 0.8% annually, and high-yield corporate bonds returned 4.4% annually.
Better yet, Bitcoin has beaten those asset classes in four of the last five years, indicating that its strong gains were not the result of a single extraordinary year.
