Bitcoin (BTC) price could reach $2.4 million by the end of the decade, according to Ark Invest

The new target, set in an April 24 report by research analyst David Puell, is a massive increase from the firm's former bull case target of $1.5 million.

Ark Invest has sharply raised its price forecasts for Bitcoin, predicting that the cryptocurrency may reach $2.4 million by the end of 2030 in its most bullish scenario.

The new target, set in an April 24 report by research analyst David Puell, is a massive increase from the firm’s former bull case target of $1.5 million.

This would also see Bitcoin's market capitalization hit about $49 trillion based on about 20 million supply of bitcoins until 2030. This will place Bitcoin's market almost on a par with both the U.S. and China's combined GDP, as well as capable of overtaking gold as the largest asset class in the world.

The report also takes into account nation-state adoption and corporate treasury strategies as other factors that will contribute to the value of Bitcoin in the future.

However, despite this bleak outlook, Puell believes that Bitcoin is poised for significant price appreciation in the coming years due to several key factors.

"Institutions will be a key driver of Bitcoin's future price growth," stated Puell in the report. In the best-case scenario, he estimates that Bitcoin can grab 6.5% of the $200 trillion non-gold global financial market.

This institutional adoption is the backbone of Ark's positive vision for Bitcoin.

In its report, Ark Invest predicts that Bitcoin could reach between $300,000 and $1.5 million by 2030 under its bear, base, and bull case scenarios. The projections are based on expected capital inflows from institutional investment, adoption as digital gold, demand in emerging markets, and contributions by nation-state and corporate treasury.

This would be a huge change in investors' perception of the cryptocurrency, placing it in competition with the world's oldest store of value. If this occurs, it would make a huge contribution to the price appreciation of Bitcoin, as stated in the report.

According to Puell's estimates, emerging markets' price appreciation being driven by Bitcoin as a "safe haven" may represent up to nearly 14% of the total cost growth in its bull case projection.

"This has the greatest potential for capital accrual," stated Puell, referring to the fact that Bitcoin can store wealth safe from inflation and devaluation of money in unstable monetary regimes.

The firm's economists expect that in emerging economies, macroeconomic uncertainty will drive capital flows into Bitcoin.

"The greater the uncertainty about a country's economic outlook, the greater the capital flows into Bitcoin," stated Ark Invest in its report.

Emerging markets are also expected to contribute to the price growth of Bitcoin as a safe haven asset due to concerns over fiat currency stability and inflation.

"We expect that emerging markets will largely drive Bitcoin's price appreciation as a safe haven asset due to concerns over fiat currency stability and inflation," stated the firm.

Finally, Puell also considers the impact of nation-state adoption and corporate treasury strategies on Bitcoin's future value.

As more nation-states integrate Bitcoin into their reserves and macroeconomic frameworks, it is likely to contribute to its overall stability and legitimacy in the global financial system.

This involvement could lead to increased confidence in Bitcoin as a global monetary asset, which in turn, might drive further price appreciation.

At the same time, the report also highlights the role of corporate treasury strategies in investing in Bitcoin.

As companies allocate portions of their treasury holdings to digital assets, such as Bitcoin, it could be a significant factor in driving up demand and, consequently, price growth.

However, even in the bear case, which saw a slight increase from $300,000 to $500,000, and the base case, which went up from $710,000 to $1.2 million, there is still a huge potential for growth in the next five years.

These targets would mean Bitcoin would need to increase at compound annual rates of 32% to 53% over to 2030. Such prolonged growth rates would be rare for an asset that has already reached trillion-dollar market capitalization.