Since the flash crash that sent Bitcoin down to levels of $42k, Bitcoin has struggled to stay above the $50,000 mark. However, despite Bitcoin trading at 30% less than its all-time high, Cathie Wood, founder and CEO of Ark Invest, remains bullish about the future of the asset.
Bitcoin’s Journey to Gain an Extra $500,000
Cathie Wood has doubled down on her September $500k prediction for Bitcoin, this time explaining how Bitcoin can gain the additional $500k in value, taking its price to $550k.
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Given the current performance of Bitcoin, it may seem impractical to consider the possibility of Bitcoin hitting $550k, however, Cathie Wood explains that, if Bitcoin welcomes 5% of institutional money, then the asset can gain $500k, which would represent a potential gain of more than 1000%.
In 2021, we have seen a great deal of movement from institutional investors into the cryptocurrency sector. Wood adds that the two preferred cryptos for institutional investors are Bitcoin (BTC) and Ethereum (ETH), Despite this, many institutional investors are yet to embrace crypto, remaining wary.
Sharing the same bullish outlook as Cathie Wood, Michael Saylor, CEO of MicroStrategy, has acquired an additional 1,434, taking the company’s stash to 122,478 bitcoins. Announcing the purchase, Saylor enthused that ”the best thing you could do is sell all $10 trillion of gold and buy bitcoin.”
On the Flipside
- While investors remain hopeful about Bitcoin’s future, the world’s largest crypto could potentially be in the midst of forming an extremely bearish, double bottom pattern.
Why You Should Care
Given the impact institutional investors have had on the price of Bitcoin in 2021, were the industry’s leading asset indeed to gain 5% of all institutional money, it could truly spark a major price rally.
