Ark Invest CEO Cathie Wood has projected a staggering price target for Bitcoin (CRYPTO: BTC). According to Wood, the cryptocurrency's price could soar to $3.8 million.

What Happened: Wood made this prediction at the Bitcoin Investor Day conference in New York on Friday. She attributed this potential surge to the increasing institutional adoption of Bitcoin and the introduction of new ETF products, reported Business Insider.

Wood's previous prediction in January suggested that Bitcoin could reach $1.5 million by 2030. She now believes that if institutional investors allocate just over 5% of their portfolios to Bitcoin, her projection would surge to $3.8 million in the same time period.

"With this institutional green light that the SEC has provided, kicking and screaming though it did, the analysis we've done is that if institutional investors were to allocate a little more than 5% of their portfolios to bitcoin, as we think they will over time, that alone would add $2.3 million to the projection I just gave you."

Wood's firm, Ark Invest, was among the 11 companies, including BlackRock and Fidelity, that received approval from the SEC for spot Bitcoin ETFs earlier this year.

The introduction of these products has led to a surge in demand, setting new records for inflows into US ETFs and driving up demand for Bitcoin itself.

The upcoming Bitcoin halving event, anticipated in April, is also expected to create a supply shock, further fueling the current demand-driven rally.

Why It Matters: Wood's recent prediction aligns with her revised expectations for Bitcoin's growth trajectory.

Wood's forecast also resonates with other experts' bullish outlook on Bitcoin. An analyst recently predicted significant growth for Bitcoin and altcoins, with Bitcoin potentially reaching close to $100,000 by the end of 2025.

Despite recent volatility, Bitcoin has shown resilience. The cryptocurrency, along with other major cryptos, experienced a surge following the Federal Reserve's decision to hold interest rates steady, indicating a strong market sentiment.

Wood's projection also underscores the growing institutional interest in Bitcoin. This trend is in line with the broader shift towards digital assets and blockchain technology, which ARK Invest predicts could reach a total market value of $220 trillion by 2030.

Price Action: Bitcoin was trading at $63,990, down 1.8% in the last 24 hours, according to Benzinga Pro.

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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