Cathie Wood Trims Bitcoin Target as Stablecoins Gain Ground

This article first appeared on GuruFocus.

Cathie Wood is easing up on her famously bullish Bitcoin forecast and stablecoins are the reason why. The Ark Invest CEO told CNBC’s Squawk Box that she’s trimming her long-term target for Bitcoin (BTC-USD) from $1.5 million to around $1.2 million by 2030, saying digital dollars like Tether (USDT) and USD Coin (USDC) are taking on some of the use cases she once expected Bitcoin to dominate.

Stablecoins are usurping part of the role we thought Bitcoin would play, Wood said, noting that they’ve caught on faster than anyone imagined particularly in emerging markets where they’re already being used for payments and cross-border transfers.

Even with that adjustment, Wood isn’t turning bearish. She still calls Bitcoin digital gold, a hedge against inflation and weakening fiat currencies something dollar-pegged stablecoins, by design, can’t replace.