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1 Top Cryptocurrencies to Buy Before They Soar 3,186%, Says Cathie Wood
Ark Invest, the asset manager led by Cathie Wood, focuses on owning companies with major disruptive potential. The idea is that innovative companies can generate enormous growth potential, translating into attractive long-term investment returns.
The famous investor likes new technologies, so it’s no surprise that his fund is also bullish on digital assets. To be more precise, there is a major cryptocurrency Cathie Bois thinks it could climb 3,186% to $2.3 million. Maybe it’s time to consider buying.
The bullish case for Bitcoin
As the oldest and most valuable cryptocurrency, Bitcoin (CRYPTO: BTC) is getting a lot of attention. Most recently, its price has skyrocketed, increasing 325% since the start of 2023. This has put even more emphasis on the asset.
But Cathie Wood believes there are many more benefits. In Ark Invest’s Big Ideas 2024 research report, the company’s analysts could eventually see Bitcoin’s price per coin reaching $2.3 million. This represents a monstrous 33x gain from the current level of $70,000 (as of the morning of April 11).
This ambitious price target is based on the simple fact that Bitcoin will attract greater amounts of capital over time. Reaching $2.3 million implies that nearly 20% of the $250 trillion in global investable assets would end up in Bitcoin.
This begs the question: why would more investors want to buy and hold Bitcoin? I think there really is a key reason why the digital asset could become a mainstay in more portfolios.
This all has to do with scarcity. There will only ever be 21 million coins in circulation. Owning something with a fixed supply cap seems like a smart move.
Cathie Wood and Ark Invest also argue that Bitcoin has proven to be a safe haven, with its price increasing significantly in 2023 following the regional banking crisis. Additionally, the company believes that due to its ability to preserve capital, diversification benefits and liquidity, Bitcoin can reduce risks for investors.
Should you buy near all-time highs?
Bitcoin is currently in record territory. Naturally, some investors are probably wondering if now is still a good time to buy crypto. Cathie Wood thinks so.
Indeed, Bitcoin currently benefits from numerous catalysts. There is the recent approval of spot ETF products which gives Bitcoin a seal of approval of sorts. The halving is coming soon, which has historically been a bullish event reducing new supply entering the market. Greater institutional acceptance, combined with clearer regulations, are also positive factors.
The story continues
Research from Ark Invest shows that any investor who bought and held Bitcoin over a five-year period would have generated a profit. This is encouraging for those who stayed away and missed the current rally.
However, to be clear, investors should take the time to understand and learn more about this unique asset and its special characteristics. Only then can you gain the conviction necessary to weather the inevitable periods of increased volatility.
If you decide it’s time to buy Bitcoin for your own portfolio, consider adopting a cost averaging strategy. This eliminates the need to time the market correctly. Instead, you can buy Bitcoin at regular intervals to take advantage of multiple entry points. Just make sure you maintain a very long-term mindset.
Cathie Wood’s Bitcoin price target may seem incredibly high, and no one knows if this digital asset is even close to that level. But that doesn’t mean you shouldn’t consider buying this top crypto right now.
Should you invest $1,000 in Bitcoin right now?
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Neil Patel and its clients have no position in any of the stocks mentioned. The Motley Fool posts and recommends Bitcoin. The Motley Fool has a disclosure policy.
1 Top Cryptocurrencies to Buy Before They Soar 3,186%, Says Cathie Wood was originally published by The Motley Fool