As markets recover from the US government shutdown, liquidity is returning and monetary policy is becoming more supportive. ARK Invest CEO Cathie Wood says these conditions could set the stage for a crypto and equities rally, while reaffirming ARK’s $1.5 million Bitcoin price target for 2030.
Markets Poised for Year-End Rebound
Equity and cryptocurrency markets may be gearing up for a strong year-end as liquidity improves and US monetary policy shifts. Since the end of the government shutdown, roughly $70 billion has flowed back into markets, with ARK Invest projecting another $300 billion to return over the next five to six weeks. This influx is expected to relieve the liquidity squeeze that has weighed on both crypto and AI valuations.
The US Federal Reserve’s scheduled end of quantitative tightening on December 1 adds another boost. By pivoting to quantitative easing, the Fed plans to buy bonds, lower borrowing costs, and stimulate economic activity. According to ARK, this combination of returning liquidity and supportive policy could create conditions for markets to reverse recent declines.
Crypto and AI Liquidity Squeeze Set to Ease
Cathie Wood highlighted that the liquidity constraints currently limiting the cryptocurrency and AI markets are likely to ease in the coming weeks. ARK Invest had previously projected Bitcoin could reach $1.5 million in a bull scenario by 2030, with a bear case target of $300,000. Despite recent market corrections, these long-term bullish targets remain intact.
Wood explained that while stablecoins have temporarily taken some attention away from Bitcoin as a safe-haven asset, gold has performed even stronger than expected. “So net, our bull price, which most people focus on, really hasn’t changed,” she noted during a recent webinar.
Expert Views Support Bitcoin Upside
Other market analysts are also predicting potential rallies in crypto markets if financial conditions continue to improve. BitMEX co-founder Arthur Hayes, for instance, suggested Bitcoin could climb to $250,000 if the Federal Reserve announces a move toward quantitative easing.
Still, the broader crypto market may lack conviction until Bitcoin retests key levels. Iliya Kalchev, an analyst at digital asset platform Nexo, told Cointelegraph that reclaiming the $92,000 mark could open the door to wider recovery, provided macroeconomic conditions remain favorable.