Cathie Wood ’s (ARK Invest CEO) most recent statements about Bitcoin suggest that the digital asset’s trillion-dollar valuation is nowhere close to where it might be in the near future.

What Happened: Speaking at a CBOE panel, she said,

“If we add all of the potential demand relative to the limited supply, we come up with incredible numbers over the long term. We have just begun. One trillion dollars is nothing compared to where this ultimately will be.”

JOIN OUR TELEGRAM CHANNEL? CLICK HERE

PASSIVE INCOME FROM CRYPTOCURRENCY

Cathie Wood also described the current market conditions as favorable for a Bitcoin ETF

With the right amount of liquidity and demand from institutional investors. “We are now moving into what I believe will be prime time,” she said.

In fact, ARK CEO believes that the demand from institutions will be the driving force of Bitcoin’s rise in valuation.

Why It Matters: According to research from ARK based on “a million Monte Carlo simulations,” if institutions want to minimize volatility and maximize their Sharpe ratio, they should put something between two and a half and six and a half percent of Bitcoin in their portfolios, because of its low correlation to any other asset class.

As large institutions like Tesla Inc (NASDAQ: TSLA) and Square Inc (NYSE: SQ) have already allocated a portion of their cash reserves to Bitcoin, ARK’s prediction of institutional adoption has already begun taking shape.

 

Wood’s fellow CBOE panel member Kevin O’Leary too had some thoughts on Bitcoin’s present and future valuation.

“Even at a trillion dollars, it’s tiny,”

said O’Leary, commenting that if Bitcoin is going to grow, it’s going to be because it becomes compliant to ethics committees around the world.

Price Action: Bitcoin was up by 4.05% in the past 24-hours, trading at $58,148 at the time of writing. The market-leading cryptocurrency resumed its upward rally, with some increased volatility after the $6 billion options expiry last Friday.

JOIN OUR TELEGRAM CHANNEL? CLICK HERE

PASSIVE INCOME FROM CRYPTOCURRENCY

What's your reaction?
Happy0
Lol0
Wow0
Wtf0
Sad0
Angry0
Rip0
Leave a Comment