Many people keep thinking bitcoin could reach its all-time high of roughly $20,000 by the end of the year. Another analyst at Citibank published a new report claiming that bitcoin could potentially reach a price of $318,000 by the end of 2021. Clearly, everyone thinks the future of bitcoin will be a bright one, but for another person – Ark Investment CEO Cathie Wood – bitcoin is truly the future of money, and all these other predictions are being trumped by her belief that the cryptocurrency could eventually reach a whopping figure of roughly $500,000 per unit.
Cathie Wood: $500,000 Is Certainly Possible
No doubt bitcoin has done extremely well. While it had a shaky couple of months during the first half of 2020, the currency eventually managed to recover from its previous drops during the summertime and eventually rose beyond the $9,000 level. Now, it’s trading for twice that, having surpassed the $18,000 level in recent days, but this is nothing compared with where Wood thinks the currency can go.
In a recent virtual investment meeting set up by Barron’s, Wood took part in the seminar and expressed her thoughts on bitcoin, saying that while the currency has indeed spiked by more than 150 percent, this could easily only be a starting point for the world’s number one cryptocurrency by market cap.
She said that the Fed has sought to keep interest rates low, which has ultimately allowed the digital currency to spike and shine over the past year. It is now looked at as a hedge against inflation, which according to many analysts, has been running rampant this year thanks, in part, to spiking coronavirus cases throughout the globe.
In addition, she also pointed out that many institutional investors have gotten involved in bitcoin, and that this will likely inspire many others to follow suit. She said that the situation is reminiscent of when institutions first began to make investments in real estate and other smaller markets. Initially, things began with investments of roughly 0.5 percent. Nothing major. In short time, however, these institutions began making investments of roughly five percent or more in these industries.
Institutions Will Get More Involved
She says that should institutions continue their present path with bitcoin and engage in small, single-digit investments in the digital currency, the asset will have no problem reaching a price of roughly $400,000 or $500,000 in the coming years.
The only thing that’s potentially scaring analysts and investors alike is the idea that bitcoin appears to be following its 2017 patterns to a tee. By the end of that year, the currency rose to roughly $20K per unit, though at around the same time the following year, the price had fallen to the mid-$3,000 level, and there may be some concern that the same incident could occur following the introduction of 2021.