Cathie Wood, CEO and chief investment officer of ARK Invest.

Bitcoin will rise ten-fold to $500,000, Cathie Wood predicted at the SALT Conference on Monday.
Ark Invest’s confidence in ether has gone up dramatically after its 2.0 upgrade, she said.
“We’d still probably do 60% bitcoin, 40% ether,” she said.
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Ark Invest CEO Cathie Wood expects bitcoin to soar to $500,000, and her firm’s conviction in ether has strengthened tremendously, the star stock-picker said in an interview with CNBC anchor Andrew Ross Sorkin at the SALT Conference on Monday.

Her price prediction depends on whether companies continue to diversify their balance sheets into the biggest cryptocurrency by market value and institutional investors begin to allocate 5% of their funds to it.

If that happens, “we believe that the price will be ten-fold of where it is today,” she said. “So instead of $45,000, over $500,000.”

Wood didn’t mention a specific time period in which this could happen, but she told Sorkin earlier in the interview her price targets are made with a five-year horizon in mind.

When asked if she could own just one cryptocurrency, she said she would default to bitcoin “because countries are now deeming it legal tender.”

El Salvador has officially made bitcoin legal currency, while Panama and Ukraine are in the process of doing the same.

Wood also pointed out the potential in ether, which is up 350% so far this year, and laid out a preference for a 60:40 bitcoin-to-ether crypto portfolio.

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“Ether, however, is seeing an explosion in developer activity thanks to NFTs and DeFi,” she said. “I’m fascinated with what’s going on in DeFi, which is collapsing the cost of the infrastructure for financial services in a way that I know that the traditional financial industry does not appreciate right now.”

Ethereum’s hotly-anticipated upgrade to 2.0 saw an overhaul of the network’s entire infrastructure to a proof-of-stake system, under which users put forward ether to gain the right to verify transactions and earn coins.

“Our confidence in ether has gone up dramatically as we’ve seen the beginning of this transition – from proof of work to proof of stake,” Wood said. “We’d still probably do 60% bitcoin, 40% ether.”

Read More: An ex-Goldman exec turned crypto trading head explains why he thinks bitcoin can still reach $70,000 by the end of the year – and shares ‘a safe play’ that’s off the beaten track

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Source:: Business Insider

      

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