Bitcoin News Today: Stablecoins Undermine Bitcoin's Dominance, Reshape Crypto Outlook

Cathie Wood, CEO of ARK Invest, has revised her long-term Bitcoin price target downward to $1.2 million per coin by 2030, a 20% reduction from her previously cited $1.5 million forecast, according to Yahoo Finance. The adjustment reflects her growing conviction that stablecoins are increasingly fulfilling roles once expected to be dominated by Bitcoin, particularly in payments and emerging markets, CryptoBriefing reported. Wood's comments, made during a CNBC interview, highlight a strategic recalibration amid rapid developments in the stablecoin sector, which she argues is scaling faster than the cryptocurrency itself, U.Today noted.

ARK Invest's internal analysis now factors in stablecoins' adoption as a medium of exchange and store of value, particularly in regions with volatile fiat currencies, the Yahoo piece observed. Wood noted that stablecoins—tokens pegged to assets like the U.S. dollar—are "usurping part of the role we thought Bitcoin would play," as CoinSpeaker reported, leading her to trim her bullish case by $300,000. Despite this, she remains a staunch advocate for Bitcoin's potential to capture half of gold's market value as a "digital gold" asset, the Yahoo report added.

The shift in Wood's outlook coincides with ARK Invest's recent portfolio adjustments. The firm has increased exposure to crypto infrastructure plays like Bullish, a digital asset exchange, while reducing stakes in AI and tech stocks such as Palantir Technologies, according to a Yahoo report. In November 2025, ARK added $12 million in Bullish shares across multiple ETFs, signaling confidence in regulated crypto platforms, FinanceFeeds reported. Conversely, the firm sold over 38,000 Palantir shares ahead of earnings, reallocating capital to sectors aligned with its evolving thesis.

Bitcoin's price trajectory has also influenced this strategic pivot. The cryptocurrency fell below $100,000 in early November 2025, marking a 20% decline from its October peak, CryptoBriefing observed earlier. Market analysts attribute the drop to broader risk-off sentiment, including U.S. government shutdown concerns that drained liquidity from asset markets, U.Today reported. Meanwhile, stablecoin market capitalization has surged to an all-time high of $306 billion, outpacing Bitcoin's five-year growth by over 200%, CoinSpeaker noted.

Wood's revised target does not signal a loss of faith in Bitcoin's long-term potential. She emphasized that institutional adoption and Bitcoin's role as a hedge against fiat currency devaluation remain intact, CoinSpeaker reported. However, she acknowledged that stablecoins' rise has reshaped the crypto landscape, necessitating a recalibration of expectations. "The whole [crypto] space gets bigger," she said, suggesting that stablecoins and Bitcoin can coexist within an expanding digital monetary ecosystem, the Yahoo piece remarked.

As the crypto market navigates regulatory clarity and macroeconomic shifts, ARK Invest's strategic bets underscore a broader industry trend: the diversification of digital assets into complementary roles. Whether Bitcoin can reclaim its dominance in payments or solidify its status as a store of value will depend on how effectively it adapts to this evolving landscape.