Ark Invest CEO Cathie Wood has always been bullish on Bitcoin. The CEO has previously stated that she expected the price of the digital asset to 10X from 2021 prices. Putting it at least at $500K in the next five years. Wood has made the prediction earlier in the year. And has now reiterated this prediction two different times. Wood believes that the digital asset remains in a “capitulation phase,” making it a great time to buy the asset.
The CEO’s belief in bitcoin has been evident in her investment choices. Cathie Wood’s investment firm Ark Invest owns shares in Coinbase. The first crypto exchange to go public in the United States. Ark Invest was one of the first to invest in the crypto exchange. Wood’s firm also owns shares in Grayscale Bitcoin Trust, presently the biggest bitcoin trust in the world. Currently owning over 7 million shares in the trust.
Bitcoin Price To 10X
Speaking at the SALT Conference in New York, Wood pointed to her firm’s research into institutional investment inflows into the asset. The CEO pointed out that if institutional investors keep diversifying their portfolios at the rate they are currently, then bitcoin was set to grow tenfold from current price points. Woods explained that the same analysis carried out for bitcoin that leads to this prediction could also apply to any other cryptocurrency in the market.
The prediction is in line with Wood’s earlier predictions of $500K in five years. This prediction has been called optimistic in the past. But given Wood’s track record and success with risky investments, it is not hard to see how this is right up her alley.
Bitcoin’s growth has shown tremendous promise in the past couple of years. Barely a dozen years old, the asset has grown over 400,000% since its creation. So a tenfold growth in the next five years is not much of a stretch for an asset with such a track record.
Wood's 10X prediction will put BTC above $500K | Source: BTCUSD on TradingView.com
Growing Confidence In Ethereum
Wood explained that she would always default to bitcoin as the first choice of crypto to invest in. Due to widespread adoption of the digital asset already. Citing recent events like El Salvador making it legal tender in the country. But admits that confidence in Ethereum has been growing dramatically with the transition from proof of work to proof of stake.
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“Ether, however, is seeing an explosion in developer activity, thanks to NFTs and DeFi. I’m fascinated with what’s going on in DeFi, which is collapsing the cost of the infrastructure for financial services in a way that I know that the traditional financial industry does not appreciate right now.”
Cathie Wood explained that although bitcoin would still take a larger share of investment, Ethereum would see a significant share. The CEO put allocations at 60% Bitcoin and 40% Ethereum.
Featured image from Financial Times, chart from TradingView.com