Ark Invest founder Cathie Wood is still of the opinion that Bitcoin is on a path to seeing its value rise to $500,000 per coin.
BTC has experienced a massive drop in the wake of Elon Musk becoming a detractor. Having reached a high of over $63,000 around Mid-April, the currency has fallen below the $40,000 mark, giving up all of the gains prompted by Tesla’s billion-dollar investment.
Musk recently implied in a tweet that the company had sold its holdings, causing the price to pick up speed on its way down. He has since confirmed that is not the case yet things don’t appear to be looking up just yet.
China has also reiterated a stance taken a few years ago, prohibiting financial institutions and online payment companies from facilitating cryptocurrency transactions. The move was reported as a ban by Reuters on Tuesday, which appeared to cause a further drop.
It’s been pointed out that no new ban is in place – while China had appeared to soften its stance on crypto last month, the recent volatility may have sparked caution, resulting in a negative statement from the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China.
Still On Its Way To $500K
Despite all of this, Wood remains confident in Bitcoin and still believes it could reach $500,000 at some point, having told Dow Jones as much last month.
“Yes, our conviction is as high,” she told Bloomberg in an interview. “The one thing that has changed here, however, is the environmental concerns around Bitcoin, in particular, have caused people like Elon Musk to pull away and say ‘Woah, let me make sure I understand this.“
“We believe that even this is going to change because: first of all, right now, the percentage of Bitcoin mined with renewable and hydroelectric power is quite substantial. I think, in China, it’s over 50% in renewables. We also believe that Bitcoin mining has integrated into the distributed grid – by that, I mean solar roofs, power walls in homes, utility merchant power producers are starting to include Bitcoin mining in the ecosystem.”
Wood added that, from all indications, the market is in a “capitulation phase,” with investors dumping and running, so this is a great time to buy.
Bitcoin isn’t the only asset struggling this week and many people have seen their portfolios hit that distressing red all around. A number of altcoins have seen 24-hour losses of over 15% and only three coins out of the top 100 remain in the green.
Polygon, Fantom, and SushiSwap are the only altcoins that have managed to go up in price during the cryptocurrency depression we are witnessing currently.