Bitcoin price will rise much further than it currently is, according to Catherine Wood from Ark Investment Management, LLC. She was speaking at a webinar hosted by the Cboe, dubbed “Exchanging Perspectives,” on March 25th.
Wood, who is the current CEO and founder of the leading investment outfit, believes that Bitcoin’s market capitalization, which is currently standing at $1.04 trillion, is poised to go up even further.
According to her, the seemingly insatiable demand, coupled with the limited supply of the 21 million BTC will drive the price to astronomical heights in the long run. She added that this is just the beginning, implying that the market cap of $1.04 trillion was nothing compared to what the future holds.
Another factor that may contribute to this increase in value is the fact that Bitcoin is increasingly being used as a reserve asset in the treasuries of publicly listed companies like Tesla and Square. Business intelligence companies like MicroStrategy are also incorporating Bitcoin into their balance sheets.
Ms. Wood’s company has published a study on its website on how institutional investors can approach Bitcoin investments and incorporation into their portfolio. According to Ark Investment, they did series of Monte Carlo simulations, to find the best way that firms can minimize their loss to volatility, and it was concluded that companies should invest somewhere between 2.5 and 6.5 percent of their portfolios in Bitcoin.
From this outlook, the small percentage investments might be a way for institutions to adopt a safe entry into the volatile and highly unpredictable crypto markets.
