Ark Invest, the asset manager led by Cathie Wood, focuses on owning businesses that have strong disruptive potential. The idea is that innovative companies can generate enormous growth potential, which will translate into attractive long-term investment returns.
The famous investor appreciates new technologies, so it is not surprising that his fund is also bullish on digital assets. To be more specific, there is a top cryptocurrency. cathie wood believes it could skyrocket 3,186% to $2.3 million. Maybe it's time for you to consider buying.
The bull case for Bitcoin
As the oldest and most valuable cryptocurrency, bitcoin (CRYPT: BTC) receives a lot of attention. In more recent times, its price has skyrocketed, rising 325% since the beginning of 2023. This has put even more focus on the asset.
But Cathie Wood believes there are many more advantages. At Ark Invest Big ideas 2024 According to the research report, the company's analysts could see the Bitcoin price per coin reach $2.3 million. That's a monster 33x gain from the current level of $70,000 (as of the morning of April 11).
This high price target is based on the simple fact that Bitcoin will attract greater amounts of capital over time. Reaching $2.3 million implies that almost 20% of the $250 trillion of global investable assets would reach Bitcoin.
This begs the question: Why would more investors want to buy and hold Bitcoin? I think there really is a key reason why the digital asset could become a mainstay of more portfolios.
It all has to do with scarcity. There will only be 21 million coins in circulation. Owning something that has a fixed supply limit seems like a smart move.
Cathie Wood and Ark Invest also argue that Bitcoin proved to be a safe haven asset as its price increased significantly in 2023 following the regional banking crisis. Additionally, the company believes that due to the ability to preserve capital, diversification benefits, and liquidity, Bitcoin can reduce risk for investors.
Should you buy near all-time highs?
Bitcoin is currently in record territory. Naturally, some investors are probably wondering if now is still a good time to buy cryptocurrencies. Cathie Wood thinks so.
This is because Bitcoin is benefiting from numerous catalysts right now. There is the recent approval of spot ETF products that gives a sort of seal of approval to Bitcoin. He halving is coming soon, which has historically been a bullish event that reduces the entry of new supply into the market. And greater institutional acceptance, added to regulatory clarity, are also positive factors.
Ark Invest research shows that any investor who bought and held Bitcoin over any five-year period would have generated a profit. This is encouraging for those who have been on the sidelines and missed the current rally.
However, to be clear, investors should take the time to understand and learn more about this unique asset and its special characteristics. Only then will you be able to generate the conviction necessary to be able to withstand the inevitable periods of increased volatility.
If you decide it's time to buy Bitcoin for your own portfolio, consider adopting a dollar-cost averaging strategy. This eliminates the need to time the market correctly. Instead, you can buy Bitcoin at regular intervals to take advantage of multiple entry points. Just make sure you keep a very long-term mindset.
Cathie Wood's Bitcoin price target may seem incredibly high, and no one knows if this digital asset is even remotely close to that level. But that doesn't mean you shouldn't consider buying this top cryptocurrency right now.
Should you invest $1,000 in Bitcoin right now?
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Neil Patel and its clients have no position in any of the stocks mentioned. The Motley Fool has positions and recommends Bitcoin. The Motley Fool has a disclosure policy.
1 of the Top Cryptocurrencies to Buy Before It Soars 3,186%, According to Cathie Wood was originally published by The Motley Fool
