Bitcoin to Hit $500,000 in 5 Years, Says Cathie Wood
Coinspeaker
Bitcoin to Hit $500,000 in 5 Years, Says Cathie Wood
Chief Investment Officer and founder of Ark Invest, Cathie Wood expects Bitcoin will hit $500,000 in the next 5 years. She also expects that the price of Tesla Inc (NASDAQ: TSLA) stocks will reach new heights.
Reason for Such Bitcoin Forecast from Cathie Wood
Wood remains confident that the Bitcoin trend will be majorly bullish in the next 5 years. She further forecasts a 10-fold increase in the price of Bitcoin. She expects this development will be propelled as more companies diversify their cash holdings, and Institutional investors allocate 5% of their holdings to Bitcoin.
She believes that the adoption of Bitcoin as legal tender by El Salvador, and the decision of Ukraine and Panama to follow suit will also contribute to this uptrend.
The company through holdings in Grayscale Bitcoin Trust has serial exposure to the Bitcoin market.
She also expressed optimism and confidence about the direction of Ether. Recall that Ether is up by as much as 350% in just 2021 alone. This, she noted is because of increased developers activity due to DeFi and the platform’s transition from proof of work as its consensus mechanism to proof of stake.
Asked to choose a single cryptocurrency, Woods opined that she would allocate 60% to Bitcoin and 40% to Ether for her portfolio
Tesla Stock Price to Rise Also
Also while speaking to New York Times columnist, Andrew Ross Sorkin, Wood opined that Tesla would reach between $3000 and $4000 in 5 years. Interestingly, three of Ark’s ETFs recently sold Tesla stocks worth about $139 million. Wood stated that the sale was simply opportunistic.
The star investor believed Tesla is well-positioned to lead the development of autonomous taxis given its success with its electric cars.
This is not the first time Wood will be forecasting Tesla stocks. In 2018, she forecasted growth to $4000. This target was hit by Tesla shares in January 2021 although on a split-adjusted basis. Recall that the company announced a 5-for-1 stock split from August 2020. Tesla shares closed Monday at $743. This is a 16% decrease from the $883 reach earlier in January.
On Cryptocurrency Regulation in the US
Wood expressed surprise that the Securities and Exchange Commission served a notice to Coinbase for its planned crypto lending platform. “It’s a callout by regulators we’ve got to discuss this stuff. This is happening very quickly,” explained she.
She is optimistic that despite the preemptive notice, the SEC will eventually allow more crypto products into the market. Currently, the SEC is yet to approve any Bitcoin ETFs, including an application filed by Wood’s firm.
“Our working assumption from the beginning … is that no regulator wanted to be blamed for preventing the next big technology breakthrough to happen in the US,” she said. If the matter drags, however, Wood said the company was considering involving the US courts.