Bitcoin Updates: Growing Popularity of Stablecoins in Developing Economies Poses Challenges to Bitcoin’s Price Prospects

Specialists in the field are lowering their long-range

price predictions as stablecoins become increasingly popular in developing economies, altering the digital currency environment. Cathie Wood, who leads Invest, has reduced her optimistic 2030 forecast for Bitcoin from $1.5 million to $1.2 million, attributing the change largely to the swift uptake of stablecoins, as she explained in a . This revision signals a wider transformation in the integration of digital assets into the world’s financial systems, especially in areas where stablecoins have become the main channels for payments and savings.

During the interview, Wood pointed out that stablecoins—like

and —are surpassing Bitcoin’s anticipated function in emerging markets. "Stablecoins are taking over some of the uses we originally expected for Bitcoin," she remarked, highlighting that these dollar-linked assets are now widely used for digital payments and as savings tools in economies facing high inflation. This trend has prompted ARK Invest to lower its bullish estimate by $300,000, though Wood still views Bitcoin as a form of "digital gold" within a dual-layer monetary system.

The updated outlook from ARK mirrors a broader reevaluation of Bitcoin’s prospects among major institutions.

has recently revised its 2025 year-end projection down to $120,000, while remain cautiously positive, forecasting a possible increase to $170,000 within the next 12 to 18 months. These changes underscore the shifting relationship between Bitcoin and stablecoins, with stablecoins now commanding and drawing liquidity away from conventional banks in regions such as Latin America and Southeast Asia.

This transformation is especially significant in emerging economies. In Venezuela, where

in 2025, more people are turning to stablecoins to protect their wealth from currency depreciation and to bypass strict currency controls. Likewise, countries like Argentina and others facing sanctions or inflation are increasingly using stablecoins for international payments and savings. that by 2028, stablecoins could move over $1 trillion out of traditional banking systems in these markets.

Even with this rivalry, Wood and other market observers maintain that Bitcoin’s core function as a decentralized store of value is unchanged. ARK Invest has increased its investments in crypto infrastructure, including platforms like

, and continues to support the growth of institutional involvement. A recent report from JPMorgan also highlights Bitcoin’s potential to benefit from leverage adjustments in the futures market, suggesting possible gains in the near future.

Since reaching an all-time high of $126,000 in early October, Bitcoin’s value has dropped by nearly 19%, trading at about $102,300 by the end of 2025. This decrease reflects increased market turbulence and a shift of capital toward AI and gold, yet long-term investors remain attentive to fundamental changes in the global financial system.