Cathie Wood of Ark Invest believes bitcoin will reach a price of $500,000.
Cathie Wood: Bitcoin Still Has a Solid Future
Her words come at a rather “inopportune” time considering the world’s largest and most popular cryptocurrency by market cap has fallen by roughly 33 percent at the time of writing. Once trading for a high of around $64,000, bitcoin has fallen into oblivion and is now trading for close to $30,000 less.
However, Wood is confident that the currency will eventually turn itself around as it always does, and that bitcoin will once again wind up at the top of the financial ladder. In a recent interview, she stated:
We go through soul-searching times like this and scrape the models, and yes. Our conviction [on bitcoin] is as high.
One of the big reasons why Wood sees such a large number in BTC’s future is that so many institutions continue to be drawn to it. She believes that if every institution were to invest approximately five percent of their portfolios into bitcoin, the currency would hit half a million dollars in no time.
Institutional investments are arguably what has made bitcoin the five-figure currency it is today. Back in August, the world was shocked to see that software firm MicroStrategy was investing so much money into what at one point was considered the most speculative trading tool in existence. This was followed by several additional purchases on MicroStrategy’s part, while a wide array of other institutional offices – including Square, Massachusetts Mutual and Stone Ridge – also invested hundreds of millions of dollars into BTC.
However, things took an even larger turn in February of this year when bitcoin garnered the attention of both Elon Musk and Tesla. Musk announced that he had added approximately $1.5 billion worth of the asset to his company’s balance sheet, which prompted one of the biggest price spikes up to that point. The currency rose past $57,000, and everyone was convinced that bitcoin had truly entered legitimate and mainstream territory.
Right now, one of the things getting in the way of bitcoin’s progression is the fact that so many high-level figures – including Musk himself – believe that the energy consumption behind bitcoin’s mining process is too heavy, though Wood and fellow Ark staffers are convinced that bitcoin is going to ultimately cause many miners and technology hounds to find more renewable sources so they can properly continue their operations.
More Investing Is On the Way
Wood also states that while bitcoin is likely to go lower before things get stronger, she is confident this will convince many additional investors to get involved, which could help boost the price in the long run. She states:
We were looking at all the indicators this morning. They are all suggesting that we are in the capitulation phase, which is a really great time to buy.