Cathie Wood maintains $500K BTC prediction but is more bullish on ETH
Ark Invest’s CEO Cathie Wood has come out to reiterate that she expects the price of leading cryptocurrency Bitcoin (BTC) to surge tenfold in the next five years. She first made this prediction earlier this year and has since stood firm by her decision. The star investor claims that BTC is currently in a capitulation phase, adding that now is the best time to purchase the cryptocurrency.
Speaking with CNBC anchor Andrew Ross Sorkin during the SALT Conference on September 13 in New York, Wood said her firm had researched institutional investments in BTC. She further claimed that if institutional investors maintain the current rate of adding BTC to their investment portfolios, the coin will grow 10X from its current level. Wood added that the same approach can be used to calculate how much other assets can gain.
While Wood’s prediction seems lofty, she has had massive success with risky investments. On top of that, BTC has grown 400,000% just over a decade since its launch. With most of this growth happening over the last five years, Wood’s forecast can come to pass, seeing as BTC already has a proven track record.
Growing interest in Ethereum (ETH)
Wood noted that BTC will always be her first choice when it comes to crypto investments. This is because of the coin’s widespread adoption, which is set to continue expanding, especially now that El Salvador has embraced it as legal tender. However, ETH has also been making headlines, especially after commencing with its transition from a Proof-of-Work (PoW) consensus mechanism to a Proof-of-Stake (PoS) model.
Commenting on the coin’s rapid growth, Wood said,
Ether, however, is seeing an explosion in developer activity, thanks to NFTs and DeFi. 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.
Due to these features, Wood said she would consider investing 60% of Ark Invest’s funds in BTC and 40% in ETH.
She also noted that although regulators are increasingly clamping down on crypto, they are careful not to drive the burgeoning asset to class to its grave. According to her, no regulator is willing to be accountable for preventing the next major FinTech breakthrough.
BTC and ETH price outlook
This news comes as both BTC and ETH continue recovering from last week’s losses. At the time of writing, BTC is changing hands at $47,193.51 after gaining 2.92% over the past 24 hours. On the other hand, ETH is trading at $3,386.24 after surging 1.84% in 24 hours.