ARK Invest CEO Cathie Wood says that institutional investors and emerging markets can send the price of Bitcoin (BTC) surging to $760,000.
In a new interview with Saxo Bank CIO Steen Jakobsen and head of equity strategies Peter Garnry, Wood explains why Bitcoin is the new asset class that institutions have been looking for.
“The correlation of returns here is very, very low relative to any other asset base. The highest correlation between Bitcoin and other assets is real estate, and that’s a 0.3.
That’s the highest. If you look at most others, very low correlations. This is what institutional investors are seeking.”
Wood says that emerging markets are likely to embrace Bitcoin, particularly after El Salvador implemented the flagship cryptocurrency as a form of legal tender in September.
“Bitcoin is the first private, global, rules-based monetary system that the world has ever known. We believe that what’s happening in El Salvador is unbelievable.
We believe emerging markets are going to embrace Bitcoin. Many of them have corrupt regimes and they don’t trust their monetary authorities. They don’t trust their politicians generally, and so we think emerging markets are a huge use case here.”
Wood says that BTC could go up by an astronomical $700,000 if emerging markets and institutions embrace the digital asset worldwide. Emerging markets would add an additional $200,000 in value, with institutions adding $500,000 more.
“That use case alone will add, I believe, the number is $200,000, if it were adopted fully throughout the emerging markets [excluding] China. That would account for $100,000 to $200,000.
If institutions were to allocate 5% of their portfolios globally [excluding] China, that use case alone would be $500,000 in addition to the $60,000 dollars in Bitcoin’s price.”
Check Price ActionDon't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Andrey Suslov
