In her latest interview with CNBC, Cathie Wood, the CEO of the Ark Invest fund, has stated her opinion on future Bitcoin price development. She argues that the cryptocurrency could rise to $500,000 if all investors allocate 5% of their funds into it.
"We think that the move by institutions into Bitcoin could add $500,000 to Bitcoin's price if they moved into the tune of roughly 5% over time," she estimates.
Many institutions have already started “moving in” on Bitcoin. Among the most notable ones belong Tesla, MicroStrategy, and Square.
“Institutional managers have to look at new asset classes that are evolving that have low correlations. That’s key to diversification and the Holy Grail in terms of asset allocation,” says Woods, while recognizing crypto as a new asset class that is very different from all the other ones.
Bitcoin is currently struggling a bit, trying to break through the $50,000 mark once again. Therefore, Wood’s estimates of BTC’s price increasing tenfold might seem a little too optimistic for some.
However, what she presents is a long-term development projection, which does not seem completely out of the left-field, considering Bitcoin’s rising popularity among investors and the general public. Moreover, with an increasing number of countries putting crypto regulation in their legislature and El Salvador starting to build Bitcoin cities, the future estimate might not be that far off.