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Cathie Wood’s Ark Invest restated its view that bitcoin will climb to $500,000 over the long term.
Wood consulted with Bloomberg on Wednesday with a bullish outlook for the cryptocurrency, even in the middle of a sharp decline in the space.
” We go through soul searching times like this and scrape the models, and yes, our conviction [on bitcoin] is as high,” Wood stated.
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A 33?cline in bitcoin over the past 2 days hasn’t shaken Cathie Wood’s confidence in the cryptocurrency, as she repeated Ark Invest’s view that it will trade to $500,000 in the long-lasting.
” We go through soul browsing times like this and scrape the models, and yes, our conviction [on bitcoin] is as high,” Wood said in an interview with Bloomberg on Wednesday.
Ark Invest’s $500,000 bitcoin cost target is asserted on the circumstance where all institutional property managers allocate upwards of 5%of their portfolios to the cryptocurrency.
The increase of bitcoin to more than $60,000 earlier this year likewise put a spotlight on its high energy usage, which is partially powered by fossil fuels like coal and natural gas. This led Tesla CEO Elon Musk to halt the EV manufacturer’s approval of bitcoin as a form of payment for its products.
But that believing around bitcoin and its environmental impact is misdirected, according to Ark Invest, as it thinks the cryptocurrency will speed up the adoption of solar and other forms of renewable resource.
As to whether bitcoin continues to move much lower from existing levels, Wood admitted that it’s possible.
” You never understand how low is low when a market gets extremely emotional,” Wood stated, observing that numerous traders disposed their position after bitcoin traded below its 200- day moving typical around the $40,000 level.
However any more decrease might represent a strong buying opportunity, Wood stated, as she thinks bitcoin has actually entered a capitulation mode.
” We were taking a look at all the indicators this morning. They are all suggesting that we are in the capitulation phase, which is a really good time to buy, no matter what the property is. A capitulation phase is buy, it’s on sale,” Wood said.
Wood’s Ark Invest is making the most of the recent decline in cryptocurrencies, as the company has actually been purchasing shares of crypto-exchange Coinbase in numerous of its ETFs amidst the decrease, according to ARK’s daily trading report..
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