Ark Invest Highlights the Catalysts Driving Bitcoin Price in 2024

Ark Invest Highlights the Catalysts Driving Bitcoin Price in 2024

Ark Invest, the asset management firm, has highlighted the catalysts driving the price of Bitcoin in 2024. “Bitcoin has emerged as an independent asset class worthy of a strategic allocation in institutional portfolios,” Ark described in its Big Ideas 2024 publication. “The shift in perception of Bitcoin from a speculative instrument to a strategic investment in a diversified portfolio will characterize its evolution in 2024.”

Big Ideas 2024 Research Publication 

The “Big Ideas 2024” research publication was released on Wednesday by Ark Investment Management (Ark Invest). “Big Ideas offers a comprehensive analysis of technological convergence and its potential to revolutionize industries and economies,” the asset management firm explained. The research-based report stated, “Bitcoin has emerged as an independent asset class worthy of a strategic allocation in institutional portfolios.”

The Big Ideas report highlights several topics, including the four catalysts driving the price of Bitcoin in 2024. The first is the launch of spot Bitcoin exchange-traded funds (ETFs) in January. The report explains that spot Bitcoin ETFs “are traded on major stock exchanges, allowing investors to buy and sell shares through their existing brokerage accounts, and should reduce the learning curve and operational complexities associated with direct investments in Bitcoin.” Ark Invest is one of the asset managers that launched a spot Bitcoin ETF on January 11.

The second catalyst is the upcoming Bitcoin halving, which occurs approximately every four years. The next one is due in April. Ark detailed:

"Historically, each halving event has coincided with the beginnings of a bull market. Expected in April 2024, this halving will reduce Bitcoin’s inflation rate from ~1.8% to ~0.9%."

The report mentions the third catalyst as “regulatory developments.” Ark has indicated that “the bankruptcies of FTX and Celsius have advanced the push for more transparent and open global crypto regulation, including the potential passage of a US bill establishing a regulatory framework for cryptocurrencies and the implementation of Europe’s Markets in Crypto-Assets (MiCA) regulation, which mandates licensing for crypto wallet providers and exchanges in the EU.”

The fourth catalyst for Bitcoin this year is “institutional acceptance,” Ark said. It added:

"The shift in perception of bitcoin from a speculative instrument to a strategic investment in a diversified portfolio will characterize its evolution in 2024."

The asset management firm noted: “Exemplifying this evolution, Larry Fink, CEO of Blackrock, has shifted his stance from Bitcoin skepticism to its potential as a ‘flight to quality.'” Blackrock, the world’s largest asset manager, was among the firms that launched a spot Bitcoin ETF on January 11. Its Ishares Bitcoin Trust (IBIT) has since accumulated over 70K BTC.

Bitcoin Could Reach USD 1.5 Million by 2030

Ark Invest CEO Cathie Wood said last month that her firm expects spot Bitcoin ETFs to attract “substantial institutional flows” that will push the price of Bitcoin “much higher.” She also said the probability of Bitcoin reaching USD 1.5 million by 2030 has increased.

What is your take on the major catalysts driving the price of Bitcoin this year, as described by Ark Invest in its Big Ideas publication? Please share your thoughts and opinions in the comments section below.