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1 Top Cryptocurrencies to Buy Before They Soar 3,353%, Says Cathie Wood
Known for its strict focus on disruptive and innovative technologies, Ark Invest is a company that has received a lot of attention in recent years. The founder of the company, Cathie Boisis widely considered a leading investor.
Given its enormous potential to change the way people store and transfer wealth, it’s no surprise that Bitcoin (CRYPTO:BTC) is a favorite asset of Wood and his team of analysts. The world’s most valuable cryptocurrency has been a fantastic investment, climbing 1,540% over the past five years (as of March 4).
Cathie Wood is extremely optimistic about her future. His company estimates that Bitcoin, despite its impressive historical run, can skyrocket 3,353%, reaching $2.3 million per token.
Extremely optimistic outlook
The key to Ark Invest’s incredibly bullish outlook is the idea that Bitcoin will find its way into more portfolios, especially for large institutional investors. The company’s analysis shows that if 19.4% of the world’s $250 trillion investable assets were allocated to Bitcoin, the price of a coin could reach a whopping $2.3 million, the the entire network being valued at $48.5 trillion.
Even with a 1% allocation, which seems much more reasonable, the price of Bitcoin would be $120,000. That’s 80% more than the current price of $66,600.
In its Big Ideas 2024 report, Ark Invest outlines the factors driving greater adoption of Bitcoin, particularly as a way for investors to de-risk their portfolios.
This may seem outrageous to those who still consider Bitcoin a fraud or a Ponzi scheme, especially JPMorgan Chase CEO Jamie Dimon. But it’s hard to deny the digital asset’s attractive qualities. Bitcoin is fully decentralized, has no counterparty risk, offers portfolio diversification benefits, is extremely liquid, and has a fixed supply cap.
This last point should not be taken lightly. With a potential total of 21 million coins, scarcity is what makes Bitcoin a compelling store of value. Ark Invest believes that more and more people will gradually realize this.
Short-term catalysts
The sentiment surrounding Bitcoin is enthusiastic for many reasons.
The recent introduction of spot exchange-traded funds was a watershed moment for Bitcoin, providing a simple and seamless way to gain exposure to the asset’s price. And the upcoming halving, which is expected to cut the new supply rate in half, has always been a very bullish event for Bitcoin.
Furthermore, Ark Invest believes that 2024 will be a big year that will see more and more asset managers change their view of Bitcoin, no longer considering it as “a speculative instrument” but as “a strategic investment in a diversified portfolio” . Add to that the ongoing progress toward regulatory clarity, and you have the ingredients needed for Bitcoin to continue its ascent.
The story continues
Set realistic expectations
However, I urge investors not to get too attached to Cathie Wood and Ark Invest’s high price targets. His company is known for releasing wild forecast numbers.
To be clear, I don’t think anyone knows what the price of Bitcoin will be in 10 or 20 years. If you expect the market cap to reach $48.5 trillion, which is Wood’s most optimistic scenario, then you’re counting on a lot of things going well. There is simply too much uncertainty for this to happen.
In my opinion, Bitcoin is still a smart investment today, even though its price has increased recently. But it’s best to temper expectations, as the gains likely won’t look like those of the past.
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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Neil Patel and its clients have no position in any of the stocks mentioned. The Motley Fool holds positions and recommends Bitcoin and JPMorgan Chase. The Motley Fool has a disclosure policy.
1 Top Cryptocurrencies to Buy Before They Soar 3,353%, Says Cathie Wood was originally published by The Motley Fool