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Cathie Wood has predicted that Bitcoin prices will rise tenfold to reach $500,000 in 5 years. The bold forecast came while the Ark Invest chief executive was speaking with CNBC anchor Andrew Ross Sorkin at the SALT fintech conference in New York on Sept. 13.
She added that this prediction is dependent on companies and institutional investors diversifying their portfolios by allocating 5% to Bitcoin.
“We believe that the price will be tenfold of where it is today, so instead of $45,000, over $500,000.”
The finance executive added that if she could hold just one cryptocurrency, it would be Bitcoin “because countries are now deeming it legal tender,” but Ether is seeing an explosion in development activity.
60:40 Split
Cathie Wood is also bullish on Ethereum, which has gained 360% since the beginning of the year. Regarding the company’s future exposure to crypto assets, she said Ark would likely have a split of 60% Bitcoin and 40% Ethereum.
Wood added that the firm has become much more confident with Ethereum now that the transition to proof-of-stake has begun. Decentralized finance is also interesting, she added, especially its ability to disrupt traditional finance.
“I’m fascinated with what’s going on in DeFi, which is collapsing the cost of the infrastructure for financial services in a way that I know that the traditional financial industry does not appreciate right now.”
She was quite confident that crypto would not be regulated to death, stating that no regulator wants to be blamed for preventing the next major fintech breakthrough.
Bitcoin and Ethereum Price Outlook
Markets have rebounded a little today, with Bitcoin trading 4% higher on the day at $47,100 at the time of writing, according to CoinGecko. BTC is now at its highest price for a week and trading above both the 50-day and 200-day moving average, which formed a golden cross just hours ago.
Ethereum, which has seen hash rates hit an all-time high, has increased 3.2% to trade at $3,400 at the time of writing. ETH is still down marginally over the past week, however, and needs to break resistance at $3,500 to register further gains.
This article was first published on: Sep 15, 2021
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