Within the investment world, ARK Invest CEO Cathie Wood is one of the most bullish voices on Bitcoin (BTC). As per her prediction, the leading cryptocurrency could hit $1.25 within five years
Within the investment world, ARK Invest CEO Cathie Wood is one of the most bullish voices on Bitcoin (BTC). As per her prediction, the leading cryptocurrency could hit $1.25 within five years.
Wood is a veteran Bitcoin investor who says ARK Invest was the first public asset manager to gain Bitcoin exposure as early as 2015. The digital currency wasn't worth even $500 in 2015, but it was a significant uptick since its launch in 2009. But the traditionalists criticized Wood's pro-Bitcoin move at the time.
Though Bitcoin is currently trading much lower than its peak of $126,080, Wood is still bullish on the cryptocurrency amid the recent rebound.
Related: Cathie Wood buys surging crypto stock despite latest controversy
In ARK Invest's "In The Know" episode published on YouTube on Sep. 5, Wood closely analyzed the Bitcoin-gold ratio, which led to her issuing another bullish call on the cryptocurrency.
Bitcoin-gold ratio, Source: Longterm Trends The correlation between Bitcoin and gold is "very low" by historical standards, and it is "very reassuring from our point of view" to see Bitcoin starting to break out relative to gold, she remarked.
The metric is "promising" and looks like a little bit of a breakthrough, she made the observation.
"You know we're big bulls on Bitcoin."
Bitcoin is a technological revolution, a new global monetary system, and the first of its kind in a new asset class, which means it has "miles to go," she added.
The AI and software sectors could see "a lot of creative destruction," and this counterparty risk is going to be profitable for Bitcoin and gold, Wood predicted.
"We think Bitcoin is both a risk-off and a risk-on asset."
What the ARK Invest CEO is suggesting is that Bitcoin’s volatility makes it a risk-on asset, but its potential to benefit from counterparty risks in the tech sector could give it some risk-off characteristics.
Wood predicted that the Bitcoin-gold ratio will continue to move up and go to all-time highs. As per her, the cryptocurrency will continue to gain more strength relative to gold.
While gold has gained only 1% over the last month, Bitcoin has gained 20%. However, the one-year chart paints a different picture. While gold has gained 20% over a year, Bitcoin has lost 30% during the period.
Gold was trading at $4,394.91 a pound at the time of writing.
BTC/USD, Source: DecibelBitcoin was trading at $78,576 at the time of writing, as per Decibel.
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