ARK Invest CEO Cathie Wood says that institutional investors and emerging markets can send the price of Bitcoin (BTC) surging to $760,000.
In a new interview with Saxo Bank CIO Steen Jakobsen and head of equity strategies Peter Garnry, Wood explains why Bitcoin is the new asset class that institutions have been looking for.
“The correlation of returns here is very, very low relative to any other asset base. The highest correlation between Bitcoin and other assets is real estate, and that’s a 0.3.
That’s the highest. If you look at most others, very low correlations. This is what institutional investors are seeking.”
Wood says that emerging markets are likely to embrace Bitcoin, particularly after El Salvador implemented the flagship cryptocurrency as a form of legal tender in September.
“Bitcoin is the first private, global, rules-based monetary system that the world has ever known. We believe that what’s happening in El Salvador is unbelievable.
We believe emerging markets are going to embrace Bitcoin. Many of them have corrupt regimes and they don’t trust their monetary authorities. They don’t trust their politicians generally, and so we think emerging markets are a huge use case here.”
Wood says that BTC could go up by an astronomical $700,000 if emerging markets and institutions embrace the digital asset worldwide. Emerging markets would add an additional $200,000 in value, with institutions adding $500,000 more.
“That use case alone will add, I believe, the number is $200,000, if it were adopted fully throughout the emerging markets [excluding] China. That would account for $100,000 to $200,000.
If institutions were to allocate 5% of their portfolios globally [excluding] China, that use case alone would be $500,000 in addition to the $60,000 dollars in Bitcoin’s price.”
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The post Here’s What Could Add $700,000 to the Price of Bitcoin, According to Cathie Wood of Ark Invest appeared first on The Daily Hodl.
