The CEO of Ark Investment Management (Ark Invest), Cathie Wood, still predicts that the price of bitcoin will be $500K. She says that all indicators “are all suggesting that we are in a capitulation phase, which is a really great time to buy, no matter what the asset is.”
Ark Sees Bitcoin Reaching $500K
Ark Invest CEO Cathie Wood has shared her view about the current bitcoin market and her prediction of where the price of the cryptocurrency will rise to in an interview with Bloomberg Wednesday.
Wood has previously predicted that the price of bitcoin will increase to $500K. With the current market turbulence and sell-offs across a broad range of cryptocurrencies, she was asked if she still stands by her forecast.
Referencing work done by her firm’s crypto analyst, Wood replied, “We do. I do,” emphasizing:
Yes, our conviction is as high.
She continued: “The one thing that has changed here, however, is the environmental concerns around bitcoin, in particular, have caused people like Elon Musk to pull away and say, ‘Woah, let me make sure I understand this.’”
Musk’s electric car company, Tesla, recently announced that it has suspended accepting bitcoin for payments due to environmental concerns. However, Musk has confirmed that Tesla has not sold its bitcoins. Furthermore, when the price of bitcoin plummeted this week, Musk tweeted diamond hands emojis suggesting that Tesla will not sell its bitcoins.
Referring to the environmental concerns some people, like Musk, have, Wood detailed: “We believe that even this is going to change because, first of all, right now the percentage of bitcoin mined with renewables and hydroelectric power is quite substantial. I think in China it’s over 50% in renewables.”
She also referenced a paper Ark Invest wrote with Square Inc. arguing that “Bitcoin is key to an abundant, clean energy future.” This week, Ark also argued that bitcoin mining could be a net positive for the environment.
When asked how low the price of bitcoin could fall to from its current level, Wood said, “You never know how low is low when the market gets very emotional.” She added that “A lot of traders see bitcoin dropping below the 200-day moving average, which was at $40,000. So traders, once that happened, they just dump. Some just dump and run.”
Nonetheless, the Ark Invest CEO said, “I think we are in a capitulation phase.” She elaborated that all the indicators “are all suggesting that we are in a capitulation phase, which is a really great time to buy, no matter what the asset is. A capitulation phase is buy. It’s on sale.”
While acknowledging that some traders may continue to sell their crypto holdings, Wood emphasized:
All of our indicators are saying this is capitulation right now.