Bitcoin price will hit $550K, says Ark Invest CEO Cathie Wood

Bitcoin price will hit $550K, says Ark Invest CEO Cathie Wood

  • Ark Invest CEO Cathie Wood says many institutional traders are but to enter the crypto area

  • She says institutional traders proceed to allocate large chunks of their funding into BTC and that Bitcoin price will surge by $500,000 if hedge funds and different big-money traders put simply 5% of their cash into the asset.

Cathie Wood, the American investor whose recognition has skyrocketed over the previous 12 months on account of her funding methods, has as soon as once more reiterated her Bitcoin price name.

It’s not the primary time Wood is predicting how excessive the cryptocurrency may surge. In September, the Ark Invest CEO expressed an identical bullish view on Bitcoin, saying its worth will finally surge to $550,000 over the following few years.

She has repeated the decision in an interview with CNBC on Thursday, indicating this time that she believes the entry of huge cash into the crypto area will catapult BTC by $500k.

Wood famous that establishments solely have to allocate 5% or so of their funding into Bitcoin to see the pioneer cryptocurrency push one other $500,000 from present costs.

According to her, such an allocation to main portfolios needn’t occur in a single day, however slowly with time. Eventually, she sees BTC’s price reaching her earlier prediction of $550k, a state of affairs that requires a tenfold improve within the cryptocurrency’s worth.

The “holy grail” of asset allocation

Wood prompt that the crypto sector has frequently attracted large capital inflows from hedge funds and different institutional traders, one thing more likely to work in favour of Bitcoin.

According to her, the crypto’s pull immediately is all the way down to investor urge for food for alternatives apart from shares, bonds, or different such conventional funding instruments.

According to the investor, crypto at present matches into that class of asset class being sought by establishments. This “new asset class” she told CNBC, has Bitcoin and Ethereum as the 2 most invested.

As traders search new methods to diversify their portfolios, Wood mentioned the important thing lies in figuring out that which has low correlations to present positions.

She identified that that is how funding managers obtain diversification, calling such a realization the “holy grail” of asset allocation.

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