Cathie Wood Has #DiamondHands: Why Ark Thinks Bitcoin Prices Are Headed to $500K

Cathie Wood has made some pretty incredible predictions in recent years. Her targets are often among the most mind-blowingly bullish of any analyst or fund manager anywhere. Accordingly, her view on where Bitcoin (CCC:BTC-USD) and Bitcoin prices could be headed may not necessarily surprise many investors.

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That said, on a day when Bitcoin and other cryptocurrencies imploded, she announced a whopping $500,000 price target for Bitcoin.

Now, Ms. Wood is probably one of the greatest stock promoters of all time. Her views on hyper-growth stocks have actually turned out to be quite on the money in recent years as a bull market in growth stocks took hold. On previous dips, she’s held firm with her assertions. She’s also doubled-down on beaten up hyper-growth stocks, often selling blue-chip names to do so.

Her aggressive strategy has paid off for investors in the past. However, some investors appear to be concerned with such an aggressive approach in the face of what could be a massive correction for growth equities, if inflation concerns do result in rising rates and a bear market for growth stocks.

All that said, let’s take a look at Ms. Wood’s incredible Bitcoin prediction. After all, she might be right.

Could Bitcoin Prices Really Be Headed to $500,000?

The rally we’ve seen in Bitcoin has lasted more than a decade. Through peaks and troughs, Bitcoin has always recovered (thus far) to new highs.

Accordingly, outlandish price targets in the past have, in fact, materialized. Eventually.

Ms. Wood’s recent $500,000 price target on Bitcoin is one of many six-figure targets that have recently been announced by prominent figures. Thus, this isn’t necessarily a fringe view — some crypto bulls suggest this target could even be too low.

See also  https://www.investorplace.com/2021/08/cloudflare-stocks-ride-to-the-skies-isnt-finished-yet/

Indeed, Ms. Wood’s recently said in a Bloomberg interview that Bitcoin is currently “on sale” and she’s buying. She indicated she doesn’t know exactly where the bottom is. Thus, more downside could be on the horizon. However, she believes the market is acting emotionally and not rationally right now.

Cathie Wood has also taken aim at assertions made by Elon Musk that Bitcoin’s environmental impact is too onerous. Musk has stepped away from Bitcoin for these reasons, and many ESG-focused investors seem to be following this pop culture figure. However, Ms. Wood contends that the adoption of green energy over the long term will reduce the carbon impact of Bitcoin mining.

Whether investors agree or disagree with Ms. Wood, it’s clear she’s taking a hyper-bullish approach to her investments. It will be interesting to see where Ark’s funds go from here.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

View more information: https://investorplace.com/2021/05/cathie-wood-has-diamondhands-why-ark-thinks-bitcoin-prices-are-headed-to-500k/

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