During a recent interview, Cathie Wood stated that the price of bitcoin could reach $500,000.
Ark's Cathie Wood is sticking with her $500,000 target for Bitcoin #TheBusinessweek https://t.co/9eBp5M39Zi pic.twitter.com/VeSRF5fplm
— Businessweek (@BW) May 19, 2021
Cathie Wood is the founder, CEO and CIO of Ark Invest, a New York-based investment firm with $50 billion in assets under management, including the world’s largest actively managed ETF, Innovation ETF, with $17 billion under management and a 170% return in 2020.
Wood is very active in the crypto sector, and is now well versed in Bitcoin, so much so that many consider her a trusted source of information in this area. She is also notoriously bullish on BTC.
The price of Bitcoin according to Cathie Wood
During an interview with Bloomberg’s Carol Massar, she said that she still believes the $500,000 target is still valid, although she points out that environmental concerns have increased. However, she also stated that more than 50% of bitcoin’s energy consumption would come from renewable sources, and that at Ark Invest they believe bitcoin mining will be integrated into the electricity grid, to start including it directly within the ecosystem.
She also added that the low peak of the BTC price at this stage may not have arrived yet, due to the strong emotion in the markets, so much so that many traders when they saw the price fall below the 200-day moving average ($40,000) started selling.
However, their indicators point to a “capitulation phase” at the moment, which Wood said is “a really great time to buy”.
She also reiterated that $35,000 may not be the low, and that the decline may still continue as when a market becomes very emotional it is impossible to predict the low point.
It must be said, however, that after plummeting below $35,000, the price of bitcoin rose right back up to $40,000 yesterday, although volatility remains very high. Evidently, the $40,000 threshold suggested by Wood is exactly the one that triggers panic once it is broken to the downside. Emotions are always destined to be short-lived, and beyond the emotions, Wood confirms that their on-chain analysis reveals a good state of health for the Bitcoin network.