Forex in this article
• FTX bankruptcy rocks crypto market
• Cathie Wood sees crisis as opportunity
• Continued Bitcoin target price of over $1 million
These are difficult times for crypto investors right now. After doubts about the capitalization of Alameda Research, an FTX-affiliated company, were raised in November, FTX clients fled in droves, withdrawing billions of dollars in capital. On November 11, Sam Bankman-Fried, the founder of FTX and up to that point also CEO of the company, therefore filed for Chapter 11 bankruptcy protection in the US. And because FTX was one of the largest crypto exchanges in the world, their bankruptcy has the entire crypto market – which can already look back on a difficult year – was additionally heavily burdened.
Cathie Wood expects exorbitantly high Bitcoin price
While many crypto investors are now retreating, ARK Invest boss Cathie Wood remains true to her line and continues to believe in a bright future for Bitcoin. “Sometimes you have to prove yourself in battle, you have to go through crises (…) to see who is capable of surviving,” Wood said in a “Bloomberg” interview. She was optimistic that Bitcoin will stabilize again in the next few years and that the current crisis will make it “smell like a rose”. Therefore, she confirmed a forecast that her investment boutique ARK had already made at the beginning of the year. Accordingly, she remains convinced that the Bitcoin price could climb to more than one million US dollars by 2030.
While Wood acknowledged that the current bear market could delay crypto adoption by institutional investors. Ultimately, this is also a learning opportunity for investors. “Once they do their homework and see what’s happening here, I think they’ll feel more secure about Bitcoin and maybe Ether as a first stop because they’ll understand it better,” ARK Invest said -Boss.
ARK Invest’s “Big Ideas 2022” report read at the beginning of the year that Bitcoin could continue to scale in response to technological advances. In addition, institutional ownership of Bitcoin will continue to expand following the introduction of more regulated products and adoption by corporations and governments. According to the report, the price of the oldest, most popular and largest cryptocurrency by market capitalization could break the $1 million mark by 2030 and even climb to $1.36 million.
Will the Bitcoin benefit from the FTX bankruptcy?
In an interview with “CNBC”, the ARK Invest boss also confirmed her Bitcoin price target of around 1.3 million US dollars by 2030. In order to reach the one million dollar mark, the investment rate of institutional investors would have to increase namely only climb from the currently estimated 2.5 percent to 5 percent.
Regarding the FTX bankruptcy, Wood opined in the interview that Bitcoin will emerge victorious from the current turmoil: “If anything, I think this cycle will benefit Bitcoin,” the star investor stated. “Sam Bankman-Fried didn’t like bitcoin because he couldn’t control it. It’s decentralized, open, transparent, which is the opposite of what FTX was.”
Criticism of Cathie Wood
With her extremely successful stock picking, Cathie Wood achieved real cult status during the corona pandemic and was even often mentioned in the same breath as star investor Warren Buffett. But in 2022 she was unable to build on these successes. Critics accuse her of holding on to losing positions for too long and even buying them again and again.
Editorial office finanzen.net
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