Ark Investment CEO believes Ethereum’s development is promising and Bitcoin’s value will continue to rise as more companies and institutions adopt the cryptocurrency.
ARK Invest CEO: Bitcoin In “Capitulation Phase,” Still Set For $500k
Bitcoin is still up in price despite the recent dips and the predictions have not slowed down. If anything, they have become even more prominent. Famed CEO of ARK Invest Cathie Wood has always been bullish on Bitcoin. The CEO earlier in the year had given what some would call an optimistic prediction for the asset. But to Wood, this is not too optimistic. When asked about her prediction, Wood explained that she and her firm still stand by the prediction.
Cathie Wood’s earlier prediction had seen the CEO putting a future forecast for the asset’s price at $500,000. Pointing to market indicators, Wood pointed that they “are all suggesting that we are in a capitulation phase, which is a really great time to buy. No matter what the asset is.” This shows that regardless of Bitcoin’s current price tag, the CEO still sees it as a buying opportunity.
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Doubling Down On The Prediction
Wood told Bloomberg in an interview that the firm continues to stand by its conviction for the future of the digital asset. The high future price prediction does not seem to phase the CEO, neither does the current price.
While bitcoin levels are currently on the high side, it is no secret that the digital asset price is still a long way from reaching $500,000. Nonetheless, Cathie Wood still stands by this prediction. When asked about the prediction, the CEO said, “Yes, our conviction is as high.” In reference to the work done by her firm’s crypto analyst, Wood said of the forecast, “We do. I do,” when asked if she and her firm still stands by the forecast.
BTC price trailing along $47K | Source: BTCUSD on TradingView.com
Wood also took time out to comment on the environmental impact of bitcoin mining. “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.’” This is in reference to Musk’s company Tesla removing the option to pay with bitcoin, after only implementing it about a month prior, citing environmental impacts of the mining as the major reason.
ARK Invest Bitcoin Investment.
Wood’s firm ARK Invest has vested interest in the infamous Grayscale Bitcoin Trust. At the time of this writing, the firm currently owns more than 7 million shares in the trust. The firm has slowly increased its stake in the trust over time. A month ago, ARK Invest bought 2.14 million shares again in the trust, putting in another $10.8 million into Grayscale.
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CEO Cathie Wood is well-known for taking risky bets with investing, which usually have worked out in the favor of her clients. So it is no surprise that Wood has turned her attention to an asset considered a risky bet. But for all intents and purposes, Wood is not investing in Bitcoin for the short term. Rather, the firm is in it for the long term, as Wood sees the asset going up as high as $500,000 in coming years.
Featured image from Verdict, chart from TradingView.com
Cathie Wood’s Ark Invest Sinks Another $10.8 Million Into Grayscale’s Bitcoin Trust
Ark Invest has now bought another $10.8 million worth of shares in Grayscale’s Bitcoin Trust. The investment firm bought another 2.14 million shares in the Grayscale Bitcoin Trust, bringing its total shares in the trust to a little over 7 million shares. The firm had been steadily increasing its stake in the Bitcoin trust which currently holds over 600,000 bitcoins, translating to roughly 3.1% of the crypto’s total supply.
Related Reading | Bitcoin Crashes Below $30,000, Bear Market Or Bullish Setup?
Bitcoin continues to struggle with recovery after the digital asset had plunged past $30,000 in July 2020. The digital asset has so far made a recovery past the $30,000 mark, but the price continues to show suffer from its all-time high in April. Despite this, institutions continue to show more faith in the market even as the price continues to suffer dips.
Ark Invest And Crypto
Ark Invest which has CEO Cathie Wood at the head has always been at the forefront of crypto investing. The investment firm was among the first to rush to invest in Coinbase when the cryptocurrency exchange had first gone public earlier in the year, listing on the Nasdaq.
BTC price posts recovery as price trades above $31,000 | Source: BTCUSD on TradingView.com
Back in February, Cathie Wood revealed to Yahoo! Finance that she believed the digital asset could shoot up to as high as $400,000. Wood had stated that the crypto space would see more institutional investors coming into the market.
What surprised me and us generally was to watch MicroStrategy, which has put all the cash on its balance sheet into bitcoin — even did another equity offering so it could put more cash on its balance sheet. And I think that’s a little crazy because I think the regulators will have something to say about this. But then you saw Square put 1% of all of its assets in Bitcoin and I think you’re going to see more of that.
Cathie Wood had become popular in the investment world by making very risky calls and when those calls turned out to be right, like in the case of Tesla, the CEO’s notoriety increased tremendously.
Wood, who remains bullish on Tesla, continues to remain bullish on the digital asset.
Bitcoin Price Movements
Bitcoin continues to see dips and recoveries as the price crash continues. The price of the digital asset had plummeted past $30,000 for the first time about a month ago, before making a sharp recovery to continue holding the $31,000 resistance point.
At the price crash below $30,000 a month ago, Ark Invest had purchased $29 million worth of shares in Grayscale’s Bitcoin Trust. Garnering over 1 million shares at the time.
Related Reading | Billionaire Tim Draper Is Unfazed By Market Downtrend, Doubles Down On $250,000 Bitcoin Price Target
The most recent purchase by Ark Invest took place on Monday and Tuesday when the coin had dipped below $30,000 for the second time in the span of a month.
This seems to put forward a pattern of purchasing for the investment firm. Every time the digital asset’s price dipped below $30,000, Ark Invest doubled down on its investment in the Grayscale Bitcoin Trust. Staying true to the belief of its CEO in bitcoin’s future.
Ark Invest also owns shares in crypto-adjacent Square and now has over $1B invested in Coinbase.
Featured image from SuperCryptoNews, chart from TradingView.com
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