Saturday, January 22, 2022

ARK Invest’s Cathie Wood Stresses How Bitcoin (BTC) could explode by 1,000% From Here

Cathie Wood, the founder and CEO of ARK Invest, has recently stated that Bitcoin (BTC), the largest cryptocurrency by market capitalization, has the potential to embark on a notable trend that could take its price to surpass half a billion dollars.

In a new interview with CNBC, Cathie Wood pointed out that ARK Invest foresees a scenario where institutional investors aid Bitcoin (BTC) to surge by 1,000% from current prices, which is relatively $500,000.

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Cathie Wood noted:

“We think the move by institutions into Bitcoin if we were to choose Bitcoin, and that seems to be their first stop, could add $500,000 to Bitcoin’s price.”

At the time of press, Bitcoin (BTC) trading at $49,249. Should Bitcoin follow Wood’s target, a price tag of $549,249 means that BTC would rise by roughly 1,000% from current values. According to the ARK Invest CEO, the scenario could play out if institutional investors allocated around 5% of their capital to BTC over time.

Wood adds that institutional money managers are investing in cryptocurrency and are initially buying the two biggest crypto assets by market cap.

“I think institutions are moving in and right now crypto of any sort, they are starting with Bitcoin and [Ethereum]. Crypto of any sort is a de minimis (immaterial) amount or percentage of institutional portfolios.”

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Cathie Wood also says institutional investors are turning to crypto for diversification purposes.

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“The reason institutions are moving in is to some extent this is a new asset class with correlations very different compared to other asset classes…

“The closest correlation to other assets is real estate. And so institutional money managers have to look at new asset classes that are evolving, that have low correlations. That’s the key to diversification and it’s the holy grail in terms of asset allocation.”


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Solomon Odunayo
Solomon Odunayo is a cryptocurrency journalist with over 3 years of experience in the crypto industry. He's sternly interested in covering developments of emerging and established blockchain projects.

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