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The bitcoin and crypto price race has stalled after its phenomenal rally in the first half of this year, with some issuing stern warnings about the outlook for bitcoin.
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The price of bitcoin has failed to exceed $ 50,000 per bitcoin despite several attempts to break through the psychological barrier. Meanwhile, ethereum, the second largest cryptocurrency after bitcoin, also fell from its all-time high reached in May.
Despite recent bitcoin struggles, Cathie Wood, the CEO of Ark Invest who has made a name for herself with big bets on bitcoin and Elon Musk Tesla’s electric car company
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Ark Invest CEO Cathie Wood is a long-time supporter of Tesla CEO Elon Musk, as well as … [+]
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“If we’re right and companies continue to diversify their liquidity into something like bitcoin, and institutional investors start allocating 5% of their funds, we think the price will be ten times what it is. today, “said Wood, speaking at CNBC presenter Andrew Ross Sorkin at the Salt Technology Conference in New York. “So instead of $ 45,000, over $ 500,000.”
In July, Wood joined Twitter’s Musk and Jack Dorsey in a live chat that saw the trio discuss the potential of bitcoin as well as the merits of memes-based ethereum and dogecoin.
Wood, who said he set price targets over a five-year timeframe, named bitcoin as his main cryptocurrency because “countries are now considering [bitcoin] legal tender, “although she is also bullish on the price of Ethereum and sees the Ark portfolio split 60%, 40% between the two.
Earlier this month, El Salvador made history by adopting bitcoin as its official currency alongside the U.S. dollar, sparking speculation that other countries could follow suit. Some suggested Ukraine could eventually adopt bitcoin after deciding to legalize it last week and a former Malaysian prime minister has noted his country should “encourage” crypto holders to invest in Malaysia.
Much of this year’s crypto price surge – which saw the combined crypto market rise from around $ 700 billion to over $ 2.1 trillion – is due to Ethereum’s rallies and of its many rivals who are competing for market share.
“[Ethereum] is experiencing an explosion in developer activity thanks to NFTs and DeFi, ”said Wood, referring to the craze for non-fungible digital collectible tokens and an explosion in crypto-based decentralized finance, designed to recreate loans and interest without the need for banks.
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Bitcoin price has risen over 300% since same period last year as ethereum price soars … [+]
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“I’m fascinated with what’s going on in DeFi, which is reducing the cost of financial services infrastructure in a way that I know the mainstream financial industry isn’t enjoying right now,” said Wood. “Our confidence in Ethereum has increased dramatically as we saw the start of this transition from proof of work to proof of stake.”
Late last year, ethereum began a long-awaited transition from energy-intensive proof of work to proof of stake, designed to help Ethereum scale and increase efficiency. However, the upgrade won’t be complete until 2022.
Wood, who sees Elon Musk’s already very high Tesla valuation skyrocket in the years to come, praised the dogecoin-loving billionaire. “[Musk is] a visionary and he sees the future so clearly, “she said, predicting” explosive growth “and committing Ark to” nothing but disruptive innovation “.
“I think the crypto and equity markets will be powered by millennials,” Wood added.
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