Cathie Wood Expects This Red-Hot Cryptocurrency to Soar by 5,600%, but a Congressman Is Selling Off His Crypto Investments.
Bitcoin (CRYPTO: BTC) is making a comeback. After losing over 70% of its value between November 2021 and November 2022, the pioneer cryptocurrency has nearly quadrupled since then. The question on everyone’s mind: Can Bitcoin sustain this upward momentum?
Cathie Wood, the founder of Ark Invest, believes it can. She expects Bitcoin to skyrocket by more than 5,600%. However, not everyone shares her optimism — including a member of Congress who has been actively selling his crypto assets.
Why is Cathie Wood Bullish on Bitcoin?
Earlier this year, eleven investment firms, including Ark Invest, received approval from the U.S. Securities and Exchange Commission (SEC) to offer spot Bitcoin exchange-traded funds (ETFs). This approval has led to an influx of money into these new ETFs, boosting the demand for Bitcoin.
Wood believes that this institutional endorsement is a significant milestone for Bitcoin. She predicts that institutional investors will allocate a little over 5% of their portfolios to Bitcoin, which could drive the price of Bitcoin to $3.8 million, according to Ark Invest’s analysis.
Another factor driving Wood’s optimism is Bitcoin’s halving event, which occurs approximately every four years. The most recent halving took place on April 19. Historically, Bitcoin has surged after each halving, and Wood expects this year’s halving to be no different.
A Congressman’s Negative Stance on Crypto
In contrast to Wood’s bullish outlook, Rep. Shri Thanedar, D-Mich., recently sold his Bitcoin holdings, along with his investments in Ethereum and LiteCoin, on Feb. 5, 2024. Thanedar’s selling spree also extended to stocks, including Alphabet, Amazon, Apple, Microsoft, and even Warren Buffett’s Berkshire Hathaway.
Is Bitcoin a Buy or Sell?
While Wood is optimistic about Bitcoin’s future, not everyone shares her enthusiasm. Some, like Rep. Thanedar, are bearish on Bitcoin and cryptocurrencies in general.
As an investor, it’s crucial to weigh both sides of the argument. While Wood’s prediction of institutional investors flocking to Bitcoin may be optimistic, it’s also important not to dismiss Bitcoin entirely. Like gold, Bitcoin’s value is based on belief, and its future value could be significantly higher or lower.
In conclusion, while the future of Bitcoin is uncertain, it’s clear that the cryptocurrency continues to generate strong opinions and debate among investors and policymakers alike.
