Bitcoin has been one of the most talked about topics in the finance world for the past few months. As more trading volume comes in and a growing number of investors enter the market, it’s becoming increasingly difficult to predict where Bitcoin’s price will go next.
On 2nd February, Cathie Wood, CEO of ARK Investment Management, revealed that they had not expected businesses and governments to adopt bitcoin as quickly as they have.
She and her team were surprised by the speed at which it has been embraced. Wood maintains her belief that Bitcoin will experience drastic growth in the near future. She projected that BTC will reach approximately $670,000 within 5 years.
Will Bitcoin Reach an All-Time High Of $670,000 In The Next 5 Years?
On February 2, Cathie Wood, CEO of Ark Invest, revealed that her team had made a misjudgment in assuming the endorsement of cryptocurrencies by businesses and governments. She reported that her firm has invested heavily in Bitcoin, predicting that its value will grow exponentially.
Wood accepted that 2022 did not bring good news to the crypto market. But, in her view, those who lost money were centralized services such as FTX Exchange, as Bitcoin was and still is a global, automated digital currency based on established rules.
Wood is still confident in her prediction that Bitcoin will surge in worth over the coming years. According to her forecast, a single Bitcoin should cost around $670,000 within five years and might hit up to $1.48 million by 2030 – that’s a whopping 6,326% appreciation from its current value.
Wood has recently changed her views on Bitcoin and now believes that wealthy individuals can benefit greatly by investing in it to protect their wealth from inflation. She admits that she was wrong in not having faith in the cryptocurrency.
Susan Wood Stands Firm On Her Bitcoin Prediction
Despite the major losses experienced by the cryptocurrency sector in the past year, ARK Investment Management (led by Cathie Wood) has kept buying crypto and shares of crypto-based firms. Furthermore, they believe that Bitcoin may soon reach a new all-time high.
Cathie has observed a growing trend of businesses including Bitcoin on their balance sheets, with Tesla, Block (formerly Square), and MicroStrategy being the biggest proponents. As a result, investors are encouraged to remain steadfast in their faith in Bitcoin. She believes that although this may be daunting at times, it just requires trusting the process and taking small steps.
A number of companies that held Bitcoin was not spared from losses in 2021. Tesla, for instance, noted an impairment loss of $204 million with regard to its Bitcoin assets for 2022 in a regulatory filing.
Last year, when Bitcoin’s price dropped, the company reduced its crypto assets by 75%. This led other countries to take a closer look at El Salvador’s move in 2021 when it became the first nation to recognize Bitcoin as a legal tender.
Despite the recent setbacks such as the FTX meltdown, Cathie Wood and ARK have remained confident in their significant Bitcoin investment. ARK’s Research Director, Frank Downing, has even commented that they have only been further strengthened in their belief in Bitcoin’s core blockchain technology.
Wood noted in a tweet that despite the tragic FTX incident, Bitcoin’s network did not skip a beat, which she viewed as a testament to its transparency and ability to remain intact in difficult times. Her recent assertions demonstrate that she confidently believes Bitcoin will experience a massive surge in value in the years to come.
As of lately, the market price of Bitcoin has been recorded as $23,293 with a 0.50% dip in the last 24 hours. Additionally, its 24-hour trading volume is $15 billion and it holds the top position according to the CoinMarketCap ranking. Lastly, its market capitalization stands at $449 billion.
From a technical standpoint, Bitcoin has surpassed an important benchmark of $23,250 with the help of an upward trendline. This support level was a significant barrier to the cryptocurrency’s rise.
BTC trading is expected to stay below the $22,778 level as an upsurge in supply could cause its price to dip down to $22,400. This breakout could result in more selling pressure and propel BTC prices even lower.
BTC prices may reach the $23,400 resistance level, and if broken, could increase to either $23,850 or $24,500. A bullish breakout above this level would be an optimistic sign for BTC.
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This article was originally published by cryptonews.