Cathie Wood, founder of the investment company ARK Investment Management, does not rule out the possibility of Bitcoin rising to $500,000.
The rally could be driven by institutional investors moving into uncorrelated assets and increasing allocations in the crypto space.
If institutions move approximately 5% of their portfolio into Bitcoin, this would open up an upside of 1000% from current levels. Institutions shifting to Bitcoin could spark a rally of up to $500,000.
Wood explained that institutions are always looking for investments outside of traditional asset classes like stocks and bonds, and cryptocurrency fits that bill.
I think organizations are moving to cryptocurrency right now.
Wood added that corporations currently prefer the two largest cryptocurrencies - Bitcoin and Ethereum. Wood explained:
The reason why corporations are moving into the crypto market is that Bitcoin is a new asset class that is poorly correlated with other assets.
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