From cointelegraph by Zoltan Vardai

Bitcoin’s chances of reaching $1.5 million are improving as institutional investors increase their exposure to digital assets, according to ARK Invest CEO Cathie Wood.

Bitcoin has been trading under the key $100,000 level since Feb. 4, after investor sentiment was pressured byglobal trade war concernsfollowing new import tariffs announced by the US and China.

Despite the temporary market slump, Bitcoin’s odds of surpassing $1.5 million a coin have increased, according to Wood. 

“Many people know us for our [Bitcoin] bull case, $1.5 million,” said Wood during a video published on Feb. 11, adding:

“We actually think the odds have gone up that our bull case will be the right number, because of what is becoming the institutionalization of this new asset class.”

“Many institutional investors are now looking at Bitcoin and thinking they need to add it to their asset allocation because its return and risk profile looks so much different than all the other assets in their portfolios,” Wood added.

Optimistic price predictions from investment giants such as Wood’s ARK Invest may invite more institutional confidence for Bitcoin. 

Continued institutional ETF adoption may bolster Bitcoin’s price because institutions hold large amounts of capital that can move crypto markets. 

Related: Bitcoin holds $95K support despite heavy selling pressure

Bitcoin price “on pace” to $1.5 million by 2030

Bitcoin’s price is on pace to reach the $1.5 million “bull case” by 2030, according to ARK Invest’s Big Ideas 2025 report.

A potential rally to $1.5 million would assume that Bitcoin realizes an average compound annual growth rate (CAGR) of 58% during the next five years.

Still, ARK Invest’s base case assumes a 40% CAGR for Bitcoin, which would mean $710,000 per BTC by 2030.

In ARK’s bear case, Bitcoin would see a 21% CAGR to $300,000 by 2030.

Related: TRUMP, DOGE, BONK ETF approvals likely, but Cathie Wood won’t invest: Finance Redefined

However, Bitcoin’s upside will be limited in the near term, until it performs a “decisive break” above $100,000, according to Iliya Kalchev, dispatch analyst at Nexo.

Traders are increasingly expecting a break above $100,000, the analyst wrote in a research note shared with Cointelegraph:

“A failure to breach could lead to short-term selling pressure toward $95,000, while a successful move might push prices toward the next resistance at approximately $106,500.”

Investors are also hoping to see a potential Bitcoin rally driven by a “supply shock” with only $2.5 million BTC left on crypto exchanges.

A supply shock occurs when strong buyer demand meets decreasing available BTC, leading to price appreciation.