Bitcoin is entering a new market phase characterized by institutional maturity and reduced volatility, according to Ark Invest's David Puell. Following the launch of spot Bitcoin ETFs in 2024, these products have attracted over $50 billion in net inflows, significantly impacting Bitcoin's supply and demand dynamics. Puell notes that ETFs and digital asset treasury strategies now absorb about 12% of Bitcoin's total supply, driving price action through 2025 and potentially into 2026.
Ark Invest projects Bitcoin's price could reach $300,000 in a bear case, $710,000 in a base case, and $1.5 million in a bull case by 2030. The firm attributes the largest share of potential upside to institutional investment. Additionally, Bitcoin's volatility has decreased, with recent drawdowns not exceeding 36%, which may attract more conservative investors. Regulatory clarity and macroeconomic conditions, such as the end of U.S. monetary tightening, could further support Bitcoin's growth.
Bitcoin Enters New Phase with Institutional Maturity and Lower Volatility
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