“We’re In A Capitulation Phase,” Says Ark Invest’s Cathie Wood; High Conviction In $500k Bitcoin Target
While she believes it is a “really great time to buy,” she doesn't know if the bottom is in because “You never know how low is low when a market gets very emotional.”
As Bitcoin price crashed more than 50% to $30,000 from its all-time high of $65k, the market sentiments have moved into the “extreme fear” category.
But Bitcoin bull Cathie Wood, chief executive officer, and chief investment officer at Ark Investment, is unperturbed. According to her, Bitcoin is on a sale right now, reiterating her price target of $500,000 per BTC.
In an interview with Bloomberg on Wednesday, when asked if her moon target from back in April still stands, she responded in no uncertain terms, “We do. I do.”
“We go through soul searching times like this and scrape the models. And yes our conviction is as high.”
However, she didn’t rule out any deeper pullback either during a time “when a market gets very emotional.”
She pointed out how traders have been looking at a 200-day moving average and when BTC dumped below that, they also dump and run, the same as speculators. “This is as bad as it got during the Coronavirus crisis,” Wood added.
But based on all the analysis Ark has done with its crypto expert Yassine Elmandjra, all the indicators suggest that we are in the capitulation phase, which she said is a “really great time to buy,” no matter what the asset is.
“I think we're in a capitulation phase.”
Besides Bitcoin, as we reported, Ark Invest is now also interested in Ethereum, and this week, they even bought more Coinbase shares, purchasing an additional $90 million. ETH -5.13% Ethereum / USD ETHUSD $ 3,386.84
-$173.74-5.13% Volume 18.13 b Change -$173.74 Open $3,386.84 Circulating 117.56 m Market Cap 398.17 b 3 h Interactive Brokers Founder Already Red Pilled, Has Been “Itching” to Offer Crypto Trading for a Long Time 5 h Visa’s Head of Crypto Inquires About Solana (SOL), PayPal Officially Enables Crypto Trading for UK Customers 5 h Trezor Adds EIP-1559 Support to its Model T Wallet, $1 Billion Worth of ETH Burned
Tackling Environmental Concerns
While price-wise, nothing has changed for Bitcoin, what has changed is the environmental concerns around Bitcoin that caught the eye of Tesla CEO Elon Musk, who wants to make sure he understands this, she said.
“We believe that even this is going to change because first of all, right now the percentage of bitcoin mined with renewables and hydroelectric power is quite substantial.”
She further discussed how, in conjunction with Square, they believe that bitcoin mining can be integrated into the distribution grid, such as solar roofs, power walls in homes, and utility merchant power producers starting to include bitcoin mining in the ecosystem.
And this would happen because renewables are intermittent power sources which would mean bitcoin mining could take off.
“If there's excess energy from solar being loaded into power walls it can be offloaded into bitcoin mining and the whole ecosystem, therefore, becomes much more economic. If this happens we believe that the adoption of solar is going to accelerate dramatically because there's another profit center associated with it, Bitcoin mining.”