Bitcoin News Today: Stablecoins' Rise in Emerging Markets Undermines Bitcoin's Price Outlook

Industry experts are revising downward their long-term Bitcoin price forecasts as stablecoins gain traction in emerging markets, reshaping the cryptocurrency landscape. Cathie Wood, CEO of ARK Invest, has trimmed her 2030 bull-case target for Bitcoin from $1.5 million to $1.2 million, citing the rapid adoption of stablecoins as a key factor, according to a CNBC interview. The adjustment reflects a broader shift in how digital assets are being integrated into global financial systems, particularly in regions where stablecoins now serve as primary payment rails and savings vehicles.

Wood emphasized during the interview that stablecoins—such as Tether's USDT and Circle's USDC—are outpacing Bitcoin's expected role in emerging economies. "Stablecoins are usurping part of the role that we thought Bitcoin would play," she said, noting that these dollar-pegged tokens are fulfilling functions like digital payments and savings in hyperinflationary markets. This dynamic has led ARK Invest to reduce its bullish price projection by $300,000, though Wood maintains a strong long-term view of Bitcoin as "digital gold" within a two-tiered monetary system.

The firm's revised forecast aligns with broader institutional reassessments of Bitcoin's potential. Galaxy Digital recently cut its year-end 2025 target to $120,000, while JPMorgan analysts remain cautiously optimistic, projecting a potential rise to $170,000 over the next 12–18 months. These adjustments highlight the evolving interplay between Bitcoin and stablecoins, with the latter now dominating a $300 billion market cap and siphoning liquidity from traditional banking systems in regions like Latin America and Southeast Asia.

Emerging markets are particularly critical to this shift. In Venezuela, where annual inflation hit 269% in 2025, residents are increasingly adopting stablecoins to hedge against currency devaluation and circumvent strict exchange controls. Similarly, Argentina and other nations grappling with sanctions or inflation have turned to stablecoins for cross-border transactions and savings. Standard Chartered estimates that stablecoins could extract over $1 trillion from legacy banking systems in these regions by 2028.

Despite the competition, Wood and other analysts stress that Bitcoin's foundational role as a decentralized store of value remains intact. ARK Invest has bolstered its exposure to crypto infrastructure, including exchanges like Bullish, while maintaining a bullish stance on institutional adoption. JPMorgan's recent report also underscores Bitcoin's potential to benefit from leverage resets in futures markets, suggesting renewed upside in the coming months.

Bitcoin's price has fallen nearly 19% since hitting a record high of $126,000 in early October, trading at around $102,300 as of late 2025. The decline reflects broader market volatility and a rotation of capital into AI and gold, though long-term investors remain focused on structural shifts in global monetary systems.