Stablecoins are overshadowing Bitcoin according to Cathie Wood

Is bitcoin losing ground where it was supposed to triumph? Cathie Wood, CEO of ARK Invest and leading figure in crypto investing, has just lowered her most ambitious target for BTC. The cause is the rise of stablecoins in emerging economies, where they are establishing themselves as a new store of value. A strong strategic readjustment, which questions the real role that bitcoin will play in the face of these dollar-backed alternatives.

Cathie Wood revises her bitcoin bullish scenario amid the rise of stablecoins

In an interview with CNBC on November 7, Cathie Wood, founder and CEO of ARK Invest, announced a significant revision to her most ambitious bullish scenario for bitcoin.

Its new projection: 1.2 million dollars by 2030, compared to 1.5 million previously. This readjustment of $300,000 is explained by a development that she considers structuring: “stablecoins are taking over part of the role that we initially thought reserved for bitcoin”she explained, referring to their massive adoption in emerging economies, particularly as a store of value.

Wood believes that stablecoins are taking an unexpected place in geopolitical contexts where bitcoin could have prevailed. However, she remains convinced of the fundamental value of BTC, describing it as “global monetary system” with characteristics close to gold, but admits that certain functions that were thought to be exclusive to bitcoin are now shared. To better understand the reasons for this revision, here is the key elements mentioned by the investor:

• A revised bullish scenario: ARK Invest reduces its long-term objective for BTC from $1.5 million to $1.2 million by 2030;

• The main cause identified: the rapid rise of stablecoins, particularly in emerging markets;

• A clear distinction: for Wood, BTC remains a fundamentally different asset, a form “digital gold”while stablecoins are “simply fiat currency tokenized on a blockchain”.

This statement marks a significant change in tone, while maintaining an overall positive outlook on bitcoin. Above all, it highlights a strategic realignment. Bitcoin retains its systemic role on a global scale, but expectations around its adoption in certain uses, particularly in economies under pressure, are now moderate, in favor of stablecoins.

The rise of stablecoins is shaking up the cards in emerging markets

Cathie Wood's revision of the scenario is based on economic trends observed in several regions of the world, particularly in Latin America. The massive use of stablecoins in economies facing hyperinflation, capital controls or international sanctions is no longer marginal.

This is now a structural phenomenon. The case of Venezuela is emblematic. According to IMF data, annual inflation of the bolivar reaches 269% this yearpushing the population to turn to more stable assets to preserve their purchasing power. In this context, dollar-backed stablecoins, such as Tether's USDT, are emerging as a tool for financial survival.

Beyond domestic use, their role now extends to state uses. In 2024, several reports revealed that the Venezuelan government used stablecoins to circumvent US sanctions and continue its international oil exports.

This reality gives substance to Standard Chartered's analysis, according to which stablecoins could siphon up to $1,000 billion from the traditional banking systems of emerging countries by 2028. The rise of stablecoins, facilitated by their technological accessibility and their anchoring in a strong currency, is therefore reshaping monetary balances where national currencies are in crisis.

The implicit competition between bitcoin and stablecoins on the fundamental uses of money, store of value, means of exchange, unit of account, but also the capacity of regulators to regulate a phenomenon which partly escapes their jurisdiction. If Cathie Wood continues to believe in the transformative potential of bitcoin, her updated analysis reflects strategic lucidity. The future will be pluralistic, shared between different crypto solutions meeting specific needs. The progression of stablecoins, far from being a simple epiphenomenon, could well constitute a lasting rebalancing in the global digital economy.