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Cathie Wood Expects This Hot Cryptocurrency To Skyrocket 5,600%, But 1 Congressman Dumped His Crypto Stake
In case you didn’t know, Bitcoin (CRYPTO: BTC) is back. The grandfather of cryptocurrencies lost more than 70% of its value between November 2021 and November 2022. However, it has almost quadrupled since then.
Could Bitcoin continue this momentum? That’s what Ark Invest founder Cathie Wood thinks. She expects the red-hot cryptocurrency to skyrocket more than 5,600%. However, not everyone agrees with her – including one active trader on Capitol Hill.
Why Wood is so bullish on Bitcoin
Eleven investment firms received approval from the United States Securities and Exchange Commission (SEC) earlier in 2024 to offer spot Bitcoin. exchange-traded funds (ETFs). Wood’s Ark Invest was one of them. It now sells several ETFs focused on Bitcoin.
The influx of money into these new ETFs offered by Ark Invest and others has boosted demand for Bitcoin. Wood said at the Bitcoin Investor Day conference in March that the SEC approval served as an “institutional green light.” She added that Ark Invest estimates that institutional investors will allocate just over 5% of their portfolios to Bitcoin in the future. This could push the price of Bitcoin to $3.8 million, according to Ark Invest analysis.
There’s also another reason Wood likes Bitcoin in the short term: the cryptocurrency’s halving. This halving takes place approximately every four years. The latest took place on April 19.
Bitcoin has soared after previous halvings in 2012, 2016 and 2020. Wood predicted at the Bitcoin Investor Conference that this year’s halving should also be a big catalyst.
A Michigan Congressman Who Is Negative About Crypto
Rep. Shri Thanedar, D-Mich., doesn’t share Wood’s optimistic outlook on Bitcoin. The congressman recently dumped his stake in Bitcoin. Thanedar didn’t even wait for the halving event; it sold on February 5, 2024.
The Michigan Democrat isn’t just negative about Bitcoin. The same day he sold Bitcoin, he also reduced his stakes in Ethereum And LiteCoin.
Has Rep. Thanedar Become a Crypto Bear? Maybe. But even if that is the case, its bearish outlook is not limited to cryptocurrencies. Thanedar has also aggressively sold several stocks in recent months, including Alphabet, Amazon, AppleAnd Microsoft.
Its sales extended beyond what we call “Magnificent Seven” shares Also. In January, Thanedar reduced its stake in Warren Buffett’s capital. Berkshire Hathaway Also.
Bitcoin: Buy or sell?
Is Bitcoin a screaming buy or sell? I fall somewhere in the middle of the spectrum.
I doubt Wood’s prediction that institutional investors put more than 5% of their portfolios in Bitcoin will come true. So far, the recent halving has not sparked a big rally for the cryptocurrency.
The story continues
On the other hand, I don’t think investors should necessarily abandon their Bitcoin positions like Rep. Thanedar did recently. For the record, I suspect his sale of all the previously mentioned stocks will prove long-term in the short term.
Buffett once called Bitcoin “rat poison squared.” The legendary investor is right that cryptocurrency does not have intrinsic value in the same way that stocks do. However, a similar argument could be made about gold – and investors have been buying it for a long time. Since Bitcoin is only worth what people think it’s worth, it’s easy to imagine how it could be worth a lot more – or a lot less – in the future.
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Cathie Wood Expects This Hot Cryptocurrency To Skyrocket 5,600%, But 1 Congressman Dumped His Crypto Stake was originally published by The Motley Fool