Ark Invest CEO Reconfirms $500K Bitcoin Price Forecast May 21, 2021 May 21, 2021 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Bitcoin NewsMay 21, 2021 by Kelly Cromley

Ark Invest CEO Reconfirms $500K Bitcoin Price Forecast

Cathie Wood, the CEO of Ark Investment Management, has reconfirmed her long-held forecast that Bitcoin would reach $500,000. Notwithstanding the asset’s recent sell-off, she explained in an interview facilitated by Bloomberg that her forecast is still valid.

She did admit, though, that the environmental issues around Bitcoin have shifted dramatically since Tesla CEO Elon Musk addressed them. Bitcoin mining is said to have a carbon footprint. Cathie’s firm, including a few other high-profile people, opposes this idea, claiming that Bitcoin is majorly produced via clean carbon-free sources.

Cathie demonstrated that a significant portion of Bitcoin is mined using wind and hydro power. The power generation grid is being merged with bitcoin mining. This suggests that solar panels, home based power walls, vendor power suppliers, and other businesses are beginning to incorporate Bitcoin mining into their operations.

“They do this because renewables are intermittent power sources. Bitcoin mining can take off if there is excess energy from solar loaded into power walls then offloaded into Bitcoin mining.”
Cathie also stated that the entire ecosystem has turned out to be cost-effective, and that as a result, solar penetration would skyrocket. A month before, Brett Winton, director of research at Ark Invest, stated that solar energy will only provide 40% of grid power devoid of Bitcoin mining.

“But with Bitcoin mining integrated into a solar system (solar + batteries) however, we believe energy providers — whether utilities or independent entities — could play the arbitrage between electricity prices and Bitcoin prices, as well as sell the ‘surplus’ solar and supply almost all grid power demands without lowering profitability.”

When the marketplace becomes too sentimental, Cathie claims it is difficult to predict the price bottom of Bitcoin. Several traders, as per Cathie, saw Bitcoin drop below the 200-day moving average, which was hovering about $40,000 at the time. The amateur investors “dumped and ran” from that moment.

She mentioned that indicators imply Bitcoin is in the stage of capitulation. This, she believes, is the perfect moment to invest. “No matter what asset it is, the capitulation phase is the best time to buy. “

Bitcoin was priced at $39,956 at the time of publishing, with a 1.3% gain over the previous 24 hours. The Ark Investment Fund is a known advocate of Coinbase stock (COIN). Following the 14% weekly drop in $COIN, the company bought over $90 million in Coinbase stock to diversify its portfolio.

As $COIN first went public last month, three funds administered by Ark Investment Management bought $246 million worth of Coinbase stock. A total of 749,205 Coinbase shares were purchased by the Ark Innovation ETF, Ark Fintech Innovation ETF, and Ark Next Generation Internet ETF.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.