Wall Street’s Queen of the Bull Market Cathie Wood believes that Bitcoin can shoot to $500,000 in the near future if it receives just 5 percent of institutional capital.
She further said that she believes that Ethereum is even more undervalued than Bitcoin and will see higher gains.
One of Wall Street’s most aggressive investors is predicting that Bitcoin will shoot up 10x, but only if institutional investors increase their allocation to the cryptocurrency. Cathie Wood said in a recent interview that she believes a 5 percent allocation to BTC from institutional investors could push the cryptocurrency to $500,000. She further claimed that Ethereum is much more undervalued than Bitcoin and will likely outperform the king of crypto in the near future.
Cathie is the founder, CEO and CIO of ARK Invest, one of Wall Street’s most risk-tolerant investment firms. She has made big bets on companies she believes will shape the future, her most famous being the bet on Elon Musk’s Tesla which has skyrocketed in value.
In an interview with CNBC’s Squawk Box, the former AllianceBernstein executive said that despite the recent price drop, she believes Bitcoin is still set to soar.
I think institutions are moving in, and they are starting with Bitcoin and Ether. Crypto of any sort is a de minimis amount or percentage of institutional portfolio. The reason institutions are moving in is because this is a new asset class with a correlation very different from other asset classes.
According to Cathie, the asset with the closest correlation to cryptocurrencies is real estate, she said, quoting a study that her firm had done.
“Institutional managers have to look at new asset classes that are evolving and have low correlations [with the overall market],” she said. “That’s the key to diversification and it’s the holy grail in terms of asset allocation.”
We think that the move by institutions into Bitcoin … could add $500,000 to bitcoin’s price if they moved into the tune of roughly 5% over time.
“We think that the move by institutions into #bitcoin … could add $500,000 to bitcoin’s price if they moved into the tune of roughly 5% over time,” says @ARKInvest‘s @CathieDWood #crypto pic.twitter.com/lX5yQGSK3b
— Squawk Box (@SquawkCNBC) December 9, 2021
This isn’t the first time that Cathie has made a bold prediction for the price of Bitcoin. A year ago, she predicted Bitcoin at $500,000, citing institutional interest in the digital asset. At the time, BTC was trading below $20,000 and has gone up over 3x since then.
And while many other top-ranking executives have made similar bold predictions, Cathie’s comes with a record of making the right calls. Her crowning glory is Tesla, a company she backed even when its stock was taking a huge hit.
Bitcoin is currently trading just above $48,000 after shedding off nearly 3 percent overnight. It has yet to recover after dropping from $56,000 a week ago and has been trading below $51,000 for much of this week.
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