Last Updated: 22 May 2021
Cathie Wood, the CEO of Ark Investment, says that Bitcoin is in the capitulation phase, which means there is the possibility that its value will touch the $500k mark. No matter what the price of Bitcoin is now, but at this time, buying bitcoin will be beneficial.
Ark Invest Predictions
In an one to one interview with Bloomberg on Wednesday, the CEO of Art Invest, Cathie Wood, reflected on the current market situation of the leading cryptocurrency, Bitcoin. On previous occasions, Wood predicted that Bitcoin would reach the $500k mark, but the recent so-called ‘crash’ of the market indicated things going the other way. She was asked in the interview if she still thinks that Bitcoin can reach $500k. She replied, “We do, I do.” She also said that she has high expectations that this will happen. According to Miss Wood, the only thing that has changed from before is Elon Musk pulling back from Bitcoin regarding environmental concerns.
Elon Musk’s electric car company Tesla suspended Bitcoin payments because of environmental issues. This announcement, along with other factors, brought the apparent decline of the cryptocurrency. The past few days have shown that bitcoin has dropped down below the $40,000 mark. Despite all this, Tesla hasn’t sold its Bitcoin holdings. In his recent tweet, Elon Musk used diamond hands emoji, which indicated that the company and Elon Musk haven’t yet sold their bitcoin holdings and are not planning to do so shortly.
The Future of Bitcoin
The main reason that most people are criticizing bitcoin is because of its environmental issues. But some people are also revealing that digital currency is now turning towards greener energy solutions, with China using 50% of energy for mining the cryptocurrency via hydro plants. If this is the case, then it rules out the primary reason for the currency’s downfall, and it indicated that Bitcoin would again rise to new heights.
In an argument with Square Inc, Arc also said that Bitcoin would be using cleaner energy in the future. The company also said that the mining process of bitcoin would be net-positive for the environment.
In the interview, Wood also said that currently, it couldn’t be told how low the price of Bitcoin can go. As the currency is falling, more and more people are dumping it and running. But the current situation won’t affect the future of money. If the currency is in the capitulation phase now, it is an excellent time to invest in it.
So, the current speculation of the potential crash of bitcoin still holds hope. These statements from the CEO of Ark Invest indicated that bitcoin would rise again without any effects of the current situation.