Famous Bitcoin bull "Cathie Wood" lowers target price due to the "replacement" of stablecoins

Cathie Wood, the founder of ARK Invest, has lowered her long-term price forecast for Bitcoin, stating that stablecoins are playing a value storage role in emerging markets at an unexpectedly rapid pace, eroding the market share that was originally expected to be occupied by Bitcoin.

According to reports, this renowned tech stock investor and Bitcoin supporter indicated that she would "subtract about $300,000" from her Bitcoin bull market target price for 2030. Wood had previously predicted that Bitcoin's peak price could reach $1.5 million by 2030.

"Stablecoins are usurping part of the role we thought Bitcoin would play," Wood said in an interview. "Given what is happening with stablecoins, they are developing in the way we envisioned Bitcoin would serve emerging markets." She added:

"The speed at which stablecoins are expanding here, I believe, is much faster than anyone expected."

Despite lowering her price expectations, Wood stated that she remains optimistic about Bitcoin's overall prospects. She defines Bitcoin as a "global currency system," serving a role similar to gold as a value storage asset, but unlike stablecoins. In her view, stablecoins are merely "tokenized cash on the blockchain."

The Rise of Stablecoins in Emerging Markets

The appeal of stablecoins is particularly pronounced in economies suffering from hyperinflation, sanctions, or currency controls. Standard Chartered Bank predicts that by 2028, stablecoins pegged to the dollar could siphon off more than $1 trillion from the traditional banking systems in emerging markets.

In places like Venezuela and Argentina, residents are forced to use alternative fiat currencies such as the dollar to save and protect their purchasing power. Reports indicate that Venezuela's strict currency controls and dual exchange rate system make stablecoins a more reliable choice than holding physical dollars or depositing dollars in banks.

Multiple data points show that the adoption of stablecoins in emerging markets is rapidly increasing. According to DefiLlama, the total market capitalization of global stablecoins is expected to exceed $300 billion by 2025 and continue to grow.

Data from Chainalysis also shows that from 2022 to 2024, stablecoins dominate the total value of cryptocurrencies received in Latin America. This trend is directly related to the severe macroeconomic environment in the region. According to data compiled by the International Monetary Fund (IMF), the annual inflation rate of the Venezuelan bolívar soared to 269% by 2025, prompting millions of residents to adopt stablecoins pegged to the dollar (such as Tether's USDT) as their savings tool.

Impact on Investors: Reevaluating Bitcoin's Role

Cathie Wood's adjustment in perspective reflects a market that is reevaluating the specific roles of different digital assets in the future global financial system. While she still maintains Bitcoin's long-term value storage status as "digital gold," its payment and short-term storage functions in emerging markets are facing strong competition from stablecoins This shift in market dynamics is not an isolated case. For example, Galaxy has also lowered its Bitcoin price target for 2025 to $120,000, citing changes in market dynamics