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Bitcoin In “Capitulation Phase”

ARK Invest CEO: Bitcoin In “Capitulation Phase,” Still Set For $500k

By Best Owie – August 26, 2021 in Bitcoin Reading Time: 3 min read

Bitcoin is still up in price despite the recent dips and the predictions have not slowed down. If anything, they have become even more prominent. Famed CEO of ARK Invest Cathie Wood has always been bullish on Bitcoin. The CEO earlier in the year had given what some would call an optimistic prediction for the asset. But to Wood, this is not too optimistic. When asked about her prediction, Wood explained that she and her firm still stand by the prediction.

Cathie Wood’s earlier prediction had seen the CEO putting a future forecast for the asset’s price at $500,000. Pointing to market indicators, Wood pointed that they “are all suggesting that we are in a capitulation phase, which is a really great time to buy. No matter what the asset is.” This shows that regardless of Bitcoin’s current price tag, the CEO still sees it as a buying opportunity.

Related Reading | Why An 18% Drop In Bitcoin Could Still Be Bullish

Doubling Down On The Prediction

Wood told Bloomberg in an interview that the firm continues to stand by its conviction for the future of the digital asset. The high future price prediction does not seem to phase the CEO, neither does the current price.

While bitcoin levels are currently on the high side, it is no secret that the digital asset price is still a long way from reaching $500,000. Nonetheless, Cathie Wood still stands by this prediction. When asked about the prediction, the CEO said, “Yes, our conviction is as high.” In reference to the work done by her firm’s crypto analyst, Wood said of the forecast, “We do. I do,” when asked if she and her firm still stands by the forecast.

BTC price trailing along $47K | Source: BTCUSD on TradingView.com

Wood also took time out to comment on the environmental impact of bitcoin mining. “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.’” This is in reference to Musk’s company Tesla removing the option to pay with bitcoin, after only implementing it about a month prior, citing environmental impacts of the mining as the major reason.

ARK Invest Bitcoin Investment.

Wood’s firm ARK Invest has vested interest in the infamous Grayscale Bitcoin Trust. At the time of this writing, the firm currently owns more than 7 million shares in the trust. The firm has slowly increased its stake in the trust over time. A month ago, ARK Invest bought 2.14 million shares again in the trust, putting in another $10.8 million into Grayscale.

Related Reading | Puell Multiple: The Bitcoin Metric That Says BTC Miners Aren’t Ready To Sell

CEO Cathie Wood is well-known for taking risky bets with investing, which usually have worked out in the favor of her clients. So it is no surprise that Wood has turned her attention to an asset considered a risky bet. But for all intents and purposes, Wood is not investing in Bitcoin for the short term. Rather, the firm is in it for the long term, as Wood sees the asset going up as high as $500,000 in coming years.

At this time of writing, BTC is trending around $46,600, with an overall market cap of $881 billion. The beginning of the week saw the price break out past $50K. Current trending patterns show the asset will usher in the weekend below $50K.

Featured image from The Independent, charts from Twitter and TradingView.com

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The original article was written by Best Owie and posted on NewsBTC.com.

Article reposted on Markethive by Jeffrey Sloe

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