Chief Executive Officer of Ark Invest, Cathie Woods, has made a bold prediction regarding the future price of Bitcoin. According to the chief, the world’s most valuable cryptocurrency could be worth about $500,000 in the next five years.
Woods pointed out that although it’s possible for Bitcoin to reach such heights within the projected period, it will depend on the level of Bitcoin investments companies are willing to make. She stated that institutional investors and companies should be able to make an investment of 5% and above from their balance for Bitcoin to hit such a price level.
She was making this ambitious forecast during an interview with CNBC anchor Andrew Ross Sorkin.
“We believe that the price will be tenfold of where it is today, so instead of $45,000, over $500,000.” The finance executive commented.
Ethereum Also Tipped For Unprecedented Surge
Apart from Bitcoin, Cathie Woods thinks Ethereum also has the potential to reach unprecedented heights in the next few years. The second-largest crypto asset by market cap has already gained 360% this year. Woods thinks there is a high potential for the price of the token to grow much higher.
Defi Sector Excites Cathie Woods
She also stated that Ark Invest has increased its holdings of both Bitcoin and Ethereum, adding that Ark will split its investment in the two crypto assets. According to Woods, the future investment outlook is likely going to be 40% for Ethereum and 60% for Bitcoin because they see stronger growth potential in the latter.
She didn’t leave out decentralized finance (DeFi) in her praise of the crypto industry, as she added that DeFi has the high potential of changing the status quo in the traditional finance industry.
Wood also stated that the company will also be throwing its weight behind Ethereum investment because of the recent proof-of-stake upgrade of the platform.