Cathie Wood, founder and CEO of ARK Invest, says Bitcoin (BTC) has the potential to explode on its way to a price target of over half a billion dollars. If Wood’s predictions come true, it will mean that BTC will rise 1,000%. Well, how does the founder of ARK Invest confirm this, let’s take a look at his analysis…
Bitcoin advocate shares his million-dollar predictions
In a CNBC interview, Woods said that ARK Invest envisions a scenario where institutional investors will increase the current value of Bitcoin by $500,000:
If we choose Bitcoin, we think that institutions will switch to Bitcoin and this seems to be their first stop, it could add $500,000 to the price of Bitcoin.
If Bitcoin follows Wood’s scenario, a price target of $548,502 would mean that BTC would increase by about 1,000% from current levels. According to ARK Invest CEO, if institutional investors allocate about 5% of their capital to BTC over time, the scenario could come true. Additionally, Wood adds that institutional money managers invest in cryptocurrency and initially buy at market capitalization of the two largest cryptocurrencies:
I think institutions are moving and starting with any kind of crypto right now, Bitcoin and (Ethereum). Crypto of any kind is the de minimis amount or percentage of institutional portfolios.
"We think that the move by institutions into #bitcoin … could add $500,000 to bitcoin's price if they moved into the tune of roughly 5% over time," says @ARKInvest's @CathieDWood #crypto pic.twitter.com/lX5yQGSK3b
— Squawk Box (@SquawkCNBC) December 9, 2021
The founder and CEO of ARK Invest also says that institutional investors are turning to crypto for diversification purposes:
To some extent, the reason institutions are moving is because this is a new asset class with very different correlations compared to other asset classes… The closest relation to other assets is real estate. This is why institutional money managers must look to emerging, low-correlation asset classes. That’s the key to diversification, and that’s the holy grail for asset allocation.