Cathie Wood Says Ark’s $1.5m Bitcoin Bull Price Hasn’t Changed As...

ARK Invest expects another $300 billion in liquidity to return after the government shutdown, a development that may alleviate the “liquidity squeeze” affecting crypto and AI valuations.

Equities and cryptocurrency markets may be setting up for a year-end reversal as liquidity improves and US monetary policy turns more supportive following the end of the record government shutdown.

Improving market conditions will be driven by the increasing liquidity, which has already returned $70 billion into markets since the end of the US government shutdown, with another $300 billion expected to return over the next five to six weeks as the Treasury General Account normalizes, according to investment management company ARK Invest.

Another potential catalyst will arrive on Dec. 1, when the US Federal Reserve is scheduled to end its quantitative tightening program and pivot toward quantitative easing, a shift that involves bond-buying to lower borrowing costs and stimulate economic activity.

“With liquidity returning, quantitative tightening (QT) ending December 1st, and monetary policy turning supportive, we believe conditions are building for markets to potentially reverse recent drawdowns,” wrote Ark in a Wednesday X post.

Related: Over 8% of Bitcoin changed hands in week, markets on ‘knife’s edge,’ Analysts say

The current “liquidity squeeze” limiting the upside of the cryptocurrency and artificial intelligence markets is set to “reverse in the next few weeks,” wrote Cathie Wood, the CEO and chief investment officer of ARK Invest, in a Thursday X post.

Earlier in April, ARK Invest predicted a 2030 Bitcoin (BTC) price target of $1.5 million in the company’s “bull case,” and a $300,000 price target in the “bear case.”

Related: Strategy unveils new credit gauge to calm debt fears after Bitcoin crash

Despite the recent crypto market correction and stablecoins subtracting from Bitcoin’s role as a safe-haven asset, the bullish price target remains unchanged.

Source: CoinTelegraph