Ark Investments CEO Cathie Woods is betting big on Bitcoin, despite current reverses. She says Bitcoin will hit $500,000, and that the chances of a Bitcoin exchange-traded fund approval in the US are high following the price correction.
Cathie Woods, CEO of Ark Investments, said Bitcoin will reach $500,000 even as the world’s largest cryptocurrency had sunk to a low of nearly $30,000 on May 19.
The cryptocurrency had a wild ride since the start of last year. Exactly a year ago, Bitcoin’s valuation was hovering at just under $10,000, then it reached its all-time peak of $65,000 on April 21.
In an interview with Bloomberg TV, Wood said Bitcoin’s current prices were "on-sale" and that she didn’t think the current prices reflect the bottom for Bitcoin. She also added that the chances of a Bitcoin exchange-traded fund approval in the United States are much more likely after the price has fallen off its speculative high.
"The odds are going up now that we have had this correction," she said.
One of the reasons for Bitcoin’s significant slump in price is Tesla founder Elon Musk’s tweets. Musk, a vocal proponent of cryptocurrencies had announced in February that his company, Tesla, would start accepting Bitcoin payments for its cars. Tesla had bought $1.5 billion worth of Bitcoins early this year. Soon after Musk’s tweet the price of the Bitcoin surged.
However, Musk recently announced that Tesla would stop accepting payments for its cars in Bitcoin due to environmental concerns regarding Bitcoin mining.
His comments soon sparked a massive dump and Bitcoin’s price fell by $2,000. However, the billionaire has cryptically tweeted that Tesla would be holding onto Bitcoins in its possession for now.
During the interview, Wood explained that the adoption of solar energy in mining will accelerate dramatically while responding to the environmental concerns raised by Elon Musk.
Woods is the CEO and Founder of Ark Investments, an investment management firm that actively handles exchange-trade-funds (ETFs) and has over $50 billion worth of assets under its portfolio management. The company often chooses to focus on investing in disruptive technologies like AI, Blockchain, CRISPR gene editing, robotics etc.
(Edited by : Shoma)
First Published: IST