Despite Bitcoin’s massive plunge that erased more than $500 million from its value, Cathie Wood does appear to be phased. The head of Ark Investment Management still expects the cryptocurrency to reach a price of $500,000, despite all other market signs signalling otherwise.
Wood pointed to a broader market selloff among highly volatile sectors, which is also dragging Bitcoin lower as well as inflation fears set in. “We go through soul searching times like this and scrape the models, and yes our conviction is just as high,” she told Bloomberg TV. Bitcoin is down nearly 40% since the beginning of the month, and currently sits at just above $35,000 at the time of writing.
Although Tesla CEO Elon Musk, another proponent of bitcoin, has recently soured on the cryptocurrency due to its negative environmental impact, Wood anticipates it to only be temporary, especially once bitcoin incorporates renewables into its mining technology. “Elon will come back and be part of that ecosystem.”
However, despite her long-term bullish outlook, bitcoin and its other digital token counterparts may face for instability before bouncing back. “You never know how low is low when a market gets very emotional,” Wood said. “I think we’re in a capitulation phase. That’s a really great time to buy no matter what the asset is,” she added.
The flagship cryptocurrency has been the subject of a dramatic descent from record-highs noted in the beginning of the year. The sharp selloff in the world’s largest digital currency can be attributed to a number of negative catalysts and headlines, including Tesla’s sudden reversal on accepting bitcoin as payment, as well as China’s recent onslaught of new regulations targeting the digital token.
Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.