Bitcoin price at $ 500,000? Why ARK’s Cathie Woods is doubling down

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the Bitcoin (CRYPTO: BTC) The price has increased 7% in the past week and has remained unchanged in the past 24 hours. One bitcoin is currently worth $ 57,564 (AU $ 77,789).

That gives the world’s first and largest crypto, according to data from CoinMarketCap, a market cap just north of $ 1.08 trillion. It also means that Bitcoin represents around 45% of the total global crypto market in terms of value.

As the digital token approaches its all-time high of more than $ 64,863, some crypto bulls are looking excitedly to the $ 100,000 level.

Others, like Cathie Wood, founder of wealth manager ARK Invest, believe it will go far higher.

Up to $ 500,000.

Bitcoin price at $ 500,000?

It’s not the first time Woods has made this prediction for the Bitcoin price. She is a longtime self-confessed bitcoin bull.

ARK not only owns Bitcoin in its portfolio, the asset manager hopes to launch a futures-based Bitcoin Exchange Traded Fund (ETF) in the US. To date, the US Securities and Exchange Commission (SEC) has not yet given the green light to crypto-related ETFs. But the SEC is looking into the matter.

How does Woods see Bitcoin price rise another 770% from here?

Speaking at the CFA Societies of Australasia conference yesterday, Woods (quoted by the Australian Financial Review) said:

I have experienced two phases in my investment life in which seemingly new asset classes have found their way into institutional portfolios. Real estate in the 70s and 80s and emerging markets …

If institutions around the world allocated 5 percent of their portfolios to Bitcoin, that allocation alone, and this is just one of many use cases out there, would add about $ 500,000 to the price of Bitcoin.

To be clear, she is talking about US dollar prices. This translates into a projected Bitcoin price of AU $ 675,000.

Woods doubled its forecast, saying, as the AFR summarizes, it doesn’t even consider the potential for big companies like Square, MicroStrategy, and Tesla to invest more of their balance sheets in bitcoin instead of cash.

Proceed with caution

If Woods is right about the direction of Bitcoin price, ARK and other Bitcoin investors will make some heady profits.

But don’t forget that a year ago today, October 15, 2020, Bitcoin traded for $ 11,500.

Go back a little further, to March 12, 2020, and the Bitcoin price was just $ 4,900. It did so during the global market sell-off following the initial pandemic panic, suggesting the token was nowhere near immune to forces affecting the broader asset markets.

Never invest more than you can afford to lose.

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