Cathie Wood has become a well-known name within the bitcoin community. The CEO at ARK Invest, Cathie Wood has been a leading proponent of this digital asset. Wood was a pioneer in bitcoin investing and she hasn’t looked back. She is actually one of most bullish investors in the space. Her predicted bitcoin value is $500,000.
Wood has placed the asset at exact value before and is unshaken by this statement. The CEO has defended her conviction in the exact once again. She sees long-term growth of the asset above $500,000 and a timeframe of only five years.
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Why is Bitcoin so Popular?
ARK Invest CEO Cathie Wood appeared on Barron’s on Wednesday. The interview was a candid conversation between the CEO and Barron’s about bitcoin, her hopes for it, as well as what she believes will drive its growth. Institutional buy-ins were the first.
No secret, institutional investors are increasing their stakes on the digital asset marketplace. With two months remaining in 2019, the year’s inflows broke the 2020 record. The total bitcoin asset under management quickly increased and stands now at $56 trillion, according to CoinShares. Wood says this increased momentum is what will drive bitcoin to $500,000.
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It is estimated that only 5% of institutional investors invest in bitcoin despite the high rate of interest. However, the trend is growing among big money and Wood explained that if “institutional investors move into bitcoin and allocate 5% of their portfolios,” then bitcoin would hit $560,000.
This is what the CEO believes will happen, but he only gives a five-year timeline. Wood predicts that Bitcoin will be worth more than $500,000 by 2026, given current investment trends.
The evidence is in the data
One thing that also backs up the CEO’s strong resolve in this prediction is the data recorded on the bitcoin blockchain. Because every transaction is recorded on the bitcoin blockchain, it is publicly available. Wood explained that this allows for a better understanding of how money moves in the market. “We can tell it’s happening because of on-chain analysis,” Wood said.
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Wood was bullish about institutional money entering the digital asset. However, he expressed shock at the move of companies like Square, Tesla and MicroStrategy to diversify their balance sheets with bitcoin. This was expected by the market, given the fact that these companies all have Bitcoin Maximalists as their leaders.
Bitcoin’s low correlation with other cryptos may also be a convincing factor for institutional investors who are looking to invest in the space. “The correlation is very low,” said Wood, and since the correlation of returns by investing is low, then institutions may well be raising their returns and risking less over time, she added.
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