PEOPLEBITCOIN

What happens after Bitcoin breaks $20,000? Ark Invest's Cathie Wood: Extremely bullish

share
What happens after Bitcoin breaks $20,000? Ark Invest

It is not news that the investment firm focused on disruptive startups, "Ark Invest," is bullish on Bitcoin. However, its CEO Cathie Wood recently explained the reasons and expressed extreme optimism for Bitcoin in a interview with Bloomberg.

Founded in 2014, "Ark Invest" is known for its optimism about Tesla's future and is also one of the top twenty shareholders of Tesla. Its founder, Cathie Wood, is acclaimed as the "female version of Buffett" for her unique investment insights and outstanding performance.

Bitcoin Proves Itself in Bear Market

Cathie Wood not only remains extremely bullish on Bitcoin but also refers to Bitcoin as the "reserve currency" in the crypto ecosystem. During a Bloomberg interview, she was asked about her thoughts on Bitcoin surpassing the $20,000 mark again, with the price at around $23,000 at the time. She expressed, "Extremely Bullish," stating:

Since 2017, we have more confidence in Bitcoin. When we saw Bitcoin drop from $20,000 to just over $3,000, and then Bitcoin's dominance increased from around 30% to nearly 70%, what does that mean? We are convinced from the bottom of our hearts that Bitcoin is the reserve currency in the crypto ecosystem.

Cathie Wood emphasized that this process has made Bitcoin the safest currency, playing a crucial role, and also proving the security of the blockchain technology behind Bitcoin, which is the most secure among all blockchain projects.

Aiming for $500,000

In late November, Cathie Wood mentioned in an interview with the U.S. financial media Barron's that institutional investors have started to get involved in Bitcoin investments, further driving up the price of Bitcoin. She stated:

Compared to institutions entering emerging markets and the real estate market in the early stages, they will go from starting at 0.5%, 1%, to a more reasonable 5%. If most institutions invest in Bitcoin at this percentage, the price will reach between $400,000 and $500,000.

She also mentioned that some investors see Bitcoin as digital gold and as a hedge against currency inflation, which are some of the reasons for the upward momentum. Cathie Wood, who has long been focused on traditional financial markets and disruptive innovation, is very familiar with significant events in the crypto industry. In her market commentary on December 5th, she once againemphasizedinstitutional involvement in Bitcoin:

The starting point for these institutions is not only investment but also the perspective of hedging the depreciation of corporate cash reserves. You should already know that MicroStrategy has fully invested all cash on its balance sheet into Bitcoin, Square did the same with 1%, and PayPal introduced cryptocurrency trading services. I believe more companies will follow suit in the future.

As of now, Cathie Wood's views on the crypto market are solely focused on Bitcoin, with no comments on other projects. However, she recently retweeted a data chart about developers of underlying chains, showing that the number of developers on Polkadot exceeded Ethereum's record after 1,300 days online. If Cathie Wood starts to explore other public chains or DeFi projects in the future, it is sure to be quite interesting.