Cathie Wood, the head of ARK Invest, thinks Bitcoin’s recent price stability is a positive sign. She believes the current sideways trading around $90,000 is healthy for the long term.
A Healthy Correction
Wood explained that a steady climb without any dips isn’t ideal. She prefers to see a “wall of worry” – periods of consolidation that build anticipation before a significant price increase. She sees the current situation as just that.
Institutional Adoption is Just Beginning
According to Wood, institutional investors are only beginning to seriously consider Bitcoin. She pointed out that many money managers now have a responsibility to explore adding Bitcoin to their portfolios. With only about 1 million Bitcoins left to mine, the scarcity of the asset is becoming increasingly apparent, further fueling demand. She highlighted that institutions are just starting to get involved despite nearly 20 million of the 21 million Bitcoin already in circulation.
Regulatory Clarity is Key
Wood also believes that regulatory clarity, particularly under a pro-crypto president, is crucial for Bitcoin’s future. She predicts a massive breakout once there’s more certainty around regulations and potential tax cuts. She believes this clarity will unlock innovation and investor confidence, leading to a surge in activity.
Bitcoin’s Current Price
At the time of writing, Bitcoin is trading at approximately $92,133, down slightly in the last 24 hours.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing in cryptocurrencies.
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