Forex in this article
• FTX bankruptcy shakes up the crypto market
• Cathie Wood sees the crisis as an opportunity
• Bitcoin price target maintained at over $1 million
These are tough times for crypto investors right now. After doubts about the capitalization of Alameda Research, an FTX affiliate, were raised in November, FTX clients fled in droves, withdrawing billions of dollars in capital. On November 11, Sam Bankman-Fried, the founder of FTX and until then also CEO of the company, therefore filed for Chapter 11 bankruptcy in the United States. And because FTX was one of the largest crypto exchanges in the world, their bankruptcy has additionally taken a heavy toll on the entire crypto market – which can already look back on a tough year.
Cathie Wood expects exorbitant Bitcoin price
While many crypto investors are now stepping back, ARK Invest boss Cathie Wood is sticking to her guns and still believing in a bright future for Bitcoin. “Sometimes you have to prove yourself in battle, you have to go through crises (…) to see who is able to survive,” Wood said in an interview with “Bloomberg”. She was optimistic that Bitcoin will stabilize again in the next few years and that the current crisis will make it “smell like a rose”. Therefore, it confirmed a forecast that its investment store ARK had already made at the beginning of the year. As a result, she remains confident that the price of Bitcoin could soar to over US$1 million by 2030.
While Wood acknowledged that the current bear market could delay the adoption of crypto by institutional investors. Ultimately, it is also a learning opportunity for investors. “Once they’ve done their homework and seen what’s going on here, I think they’ll feel more secure about Bitcoin and maybe Ether as their first stop because they’ll understand it better,” said declared ARK Invest -Boss.
ARK Invest’s “Big Ideas 2022” report indicated earlier this year that Bitcoin may continue to evolve in response to technological advances. Additionally, institutional ownership of Bitcoin will continue to grow following the introduction of more regulated products and adoption by businesses and governments. According to the report, the price of the oldest, most popular and largest cryptocurrency by market capitalization could cross the $1 million mark by 2030 and even soar to $1.36 million.
Will Bitcoin benefit from the bankruptcy of FTX?
In an interview with “CNBC”, the boss of ARK Invest also confirmed her Bitcoin price target of around 1.3 million US dollars by 2030. To reach the million dollar mark, the rate investment by institutional investors is expected to increase, namely only up from the 2.5% currently estimated at 5%.
Regarding FTX’s bankruptcy, Wood said in the interview that Bitcoin will emerge victorious from the current turmoil: “If anything, I think this cycle will benefit Bitcoin,” the star investor said. “Sam Bankman-Fried didn’t like bitcoin because he couldn’t control it. It’s decentralized, open, transparent, which is the opposite of what FTX was.”
Cathie Wood review
With her extremely successful stock picking, Cathie Wood achieved true cult status during the corona pandemic and was even often mentioned in the same breath as star investor Warren Buffett. But in 2022, she couldn’t build on those successes. Critics accuse him of hanging on to losing positions too long and even buying them back again and again.
editorial office finanzen.net
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