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1 Top Cryptocurrency to Buy Before It Soars 6,200%, According to Cathie Wood of Ark Invest

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3 months ago

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1 Top Cryptocurrency to Buy Before It Soars 6,200%, According to Cathie Wood of Ark Invest

Ark Invest’s Cathie Wood has made a name for herself as a bit of a financial maverick. She seems to like going against the grain and is unafraid of making bets — and sticking to them — that others might shy away from. For example, even with all of its recent woes, Wood is unapologetic in her backing of Tesla. Beyond these bold bets, however, are her often-bolder public predictions.

Chief among these is her belief that Bitcoin (CRYPTO: BTC) will continue to rise in price to levels that most crypto investors can only dream of. Wood is a huge proponent of Bitcoin and crypto more generally and was one of the more influential figures in getting spot Bitcoin exchange-traded funds (ETFs) approved by the Securities and Exchange Commission. During that process, she stated that her company believed Bitcoin could be worth as much as $1.5 million by the end of the decade (her base case target was $600,000, still not a bad return).

However, more recently, she has said she believes the upper target could be as high as $3.8 million by 2030. That’s a roughly 6,200% return from today’s price and represents a more than 100% annual return.

Wood’s reasoning relies on a critical component that, while possible, just isn’t likely

Let’s first make something clear. Wood was not necessarily saying she expects Bitcoin to reach $3.8 million, but rather that it is possible. Her reasoning is institutional money flooded the market after the approval of Bitcoin ETFs and that if institutional investors were to put an average of 5% of their collective portfolios into the cryptocurrency it could reach that high. This is a huge “if.”

It’s hard to put an exact number on the state of the market now, but a 2023 report from Ernst & Young states that 55% of institutional investors with more than $500 billion in assets — where the lion’s share of total assets are concentrated — say they had less than 1% allocated to “digital assets.” Sixteen percent say they had less than 0.1%. Most funds prefer traditional equities and fixed-income investments. Only roughly 7% of total managed assets are in “alternative investments,” which includes a broad array of assets, from farm land to private equity to crypto. To have a total average of 5% in just Bitcoin by 2030 is a stretch at best.

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Still, it’s worth noting investors are increasingly allocating money toward Bitcoin. In fact, 12% of respondents in the same category said they had more than 5% allocated and 25% of managers of all sizes have more than 5%. The vast majority of respondents expect to raise their investments in the future as well. This additional institutional capital will add a lot of value to the Bitcoin market.

Temper your expectations and remember to think about conflicts of interest

Wood is betting big on Bitcoin. She is personally invested in it and her firm’s revenue is, in part, tied to the size of the firm’s spot Bitcoin ETF. She has a vested interest in getting people excited about the returns they could achieve by investing in Bitcoin.

I do agree with her more generally though. Bitcoin will appreciate in value and, in my opinion, at a rate that exceeds traditional equities, just not as fast as she is implying. I think Bitcoin has proven it’s here to stay at this point. We’ve likely seen the last of Bitcoin losing half its value in a day or two. However, gone also are the days when you could buy $1,000 worth and become a millionaire a few years later. Sorry — you would have had to buy in sometime before 2014. Today, you should think of Bitcoin as much more like a traditional asset.

It’s still relatively new though. There is a lot of capital on the sidelines still waiting it out or at least just dipping a toe in. The more risk-tolerant institutions have already forged a path for the industry. I think more risk-averse players like pension funds and endowments will start getting in.

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1 Top Cryptocurrency to Buy Before It Soars 6,200%, According to Cathie Wood of Ark Invest was originally published by The Motley Fool

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Crypto

Bitcoin values hit record highs. Should you invest in cryptocurrency? Here’s how it works

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42 mins ago

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November 24, 2024

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Bitcoin values hit record highs. Should you invest in cryptocurrency? Here’s how it works
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If it seems everyone is talking about bitcoin these days, you’re onto something.

The digital currency has been hitting record highs and neared $100,000 this past week, having doubled in value throughout 2024. Launched in 2009, bitcoin is the first cryptocurrency, meaning that it’s a digital currency and does not rely on banks to verify transactions.

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Bitcoin’s surge – up about 130% this year – is one of the “Trump trades,” market moves that have kicked in since former President Donald Trump’s victory in the Nov. 5 election.

Trump has dabbled in cryptocurrency – releasing crypto-based digital trading cards – and Trump Media and Technology Group, which operates Truth Social, is reportedly close to acquiring crypto trading firm Bakkt. The Trump family launched its own crypto firm, World Liberty Financial, in September.

Investors have wagered Trump’s support for bitcoin and other digital assets will lead to fewer restrictions on the industry. During the presidential campaign, Trump said he would make America the “world capital for crypto and bitcoin.”

Trump has tapped Tesla CEO and SpaceX founder Elon Musk to co-lead, with Vivek Ramaswamy, the new Department of Government Efficiency, or D.O.G.E. It’s an acronym for cryptocurrency called Dogecoin, which Musk supported as it became a phenomenon in 2021. 

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Been hit with the bitcoin buzz, but don’t quite understand it? Here’s some bitcoin basics.

What is ‘Doge’?: Explaining the meme and cryptocurrency after Elon Musk’s appointment to D.O.G.E.

What is bitcoin?

Bitcoin is a digital asset, launched in 2009 by a person or group known as Satoshi Nakamoto and designed to have a cap of 21 million bitcoin tokens. Bitcoin is created as crypto miners use their computing work to validate bitcoin transactions on its decentralized blockchain network, essentially a digital ledger meant to prevent fraud. As the crypto miners work, they earn bitcoin.

So far, about 19 million tokens have been released. In April, bitcoin underwent a “halving,” which kicks in about every four years to reduce the rate at which new bitcoins are created and released into circulation. As the bitcoin cap of 21 million tokens nears, demand likely increases, according to Investopedia.

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Currently, a bitcoin is worth about $98,000. But the ownership of fractional shares of bitcoin is common, notes NerdWallet.

Cryptocurrency: Legislation likely coming under Trump administration, ex-SEC chief says

What are bitcoin ETFs?

It’s Trump’s interest in bitcoin alone that’s led to bitcoin’s climb. Earlier this year, the U.S. Securities and Exchange Commission voted to allow the sale of bitcoin-based exchange-traded funds, or ETFs, to the public.

That action allowed more investors to get into bitcoin in a similar manner to how they invest in stocks, bypassing crypto exchanges.

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How does bitcoin work?

Like the dollar, bitcoin can be used as currency, but it’s virtual and isn’t controlled by banks or governments. While an entire bitcoin is priced at nearly $100,000, you can own partial shares of each coin. The smallest share of each bitcoin is called a Satoshi – after the cryptocurrency’s creator – equal to a hundred millionth of one bitcoin, according to NerdWallet.

You can buy bitcoin on a crypto exchange such as Binance.US, online stockbrokers including Fidelity and E-Trade, and trading apps like Robinhood.

If you buy bitcoin on a crypto exchange, you will create a “crypto wallet” to hold your bitcoin. If you invest in those bitcoin ETFs the SEC approved earlier this year, online brokers will hold your bitcoin in your brokerage account as any other investment.

What can I buy with bitcoin?

Pretty much anything. For instance, you can get a bitcoin debit card, which you load with a certain amount of your cryptocurrency holdings. That can be used as you would any debit card.

Beyond that, many companies now accept cryptocurrency for purchases including AT&T, Microsoft, Rolex, Time Inc., and Tesla, notes Investopedia.

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You can buy “art,” too. That banana duct-taped to a wall, which sold last week for $6.2 million? The buyer paid in crypto.

Bitcoin: How to buy the cryptocurrency

What concerns are there about bitcoin and cryptocurrencies?

Back in 2018, investment guru Warren Buffett predicted that cryptocurrencies such as bitcoin, will likely “come to a bad ending.” His stance hasn’t really changed, reported Nasdaq.com.

But many point to the surge in bitcoin’s valuation as a sign the cryptocurrency has arrived. Anthony Scaramucci, founder of Skybridge and a former White House director of communications, has said Bitcoin could exceed $170,000 by mid-2025, and Ark Invest CEO Cathie Wood has predicted Bitcoin will hit $1.48 million by 2030, Fortune reported.

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However, crypto exchanges can fail. The 2022 bankruptcy of the FTX cryptocurrency exchange resulted in customers losing $8 billion; founder Sam Bankman-Fried was sentenced to 25 years in prison in March.

Bitcoin values dipped after that, but have since risen to new heights – because, supporters say, as more people invest in bitcoin and other cryptocurrencies, the currencies become more stable.

Volatility can be seen as an advantage for those in search of future earnings – or as a disadvantage for those seeking somewhat stable investments.

“Remember that bitcoin and crypto are highly volatile, and may be more susceptible to market manipulation than securities,” notes Fidelity Investments in a primer for investors. “Crypto holders do not benefit from the same regulatory protections applicable to registered securities, and the future regulatory environment for crypto is currently uncertain.”

Maybe think about investing in bitcoin as you would joining the wave of online bettors. “If you decide to buy Bitcoin, it’s a good rule of thumb to invest only what you can afford to lose,” writes NerdWallet’s Kevin Voigt, “and take measures to protect your assets.”

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Contributing: Daniel de Visé, Jessica Guynn, Max Hauptman, Jonathan Limehouse and Bailey Schulz of USA TODAY, and Reuters.

Follow Mike Snider on X and Threads: @mikesnider & mikegsnider.

What’s everyone talking about? Sign up for our trending newsletter to get the latest news of the day

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Crypto

Musk Tweet Sparks Dogecoin Surge, Fuels Speculation On X Payments

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9 hours ago

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November 23, 2024

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Musk Tweet Sparks Dogecoin Surge, Fuels Speculation On X Payments

Dogecoin DOGE/USD experienced a 5% surge following a tweet by Elon Musk on X. This has sparked fresh speculations about the imminent payments service on Musk’s social app.

What Happened: Musk’s Friday post, which featured a screenshot of podcaster Joe Rogan’s X profile, triggered the increase in Dogecoin’s price.

The post displayed a unique dollar icon, different from the app’s tipping service, leading to speculations that it could be related to the anticipated X Payments service.

Musk responded to the speculation with a simple “true”, further fueling the rumors. Dogecoin’s price has historically been influenced by payment-related news from any of Musk’s ventures, including X, formerly known as Twitter.

There are speculations that once the service is live, it might support transactions with digital assets like DOGE, given Musk’s known fondness for the token.

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Musk’s electric car company, already accepts DOGE payments for certain merchandise purchases in its online store.

Also Read: Dogecoin’s Active Users On The Rise, Will This Impact DOGE Price?

Over the past 24 hours, DOGE has advanced 6.16% and at the time of writing it was trading at $0.4332, outperforming the stagnant Bitcoin BTC/USD prices. The token has risen 190% over the past month, trading at its highest level since May 2021.

Why It Matters: The surge in Dogecoin’s price following Musk’s tweet is significant as it highlights the influence Musk has over the cryptocurrency market.

His tweet sparked speculations about the forthcoming X Payments service, which could potentially support transactions with digital assets like DOGE.

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This is particularly noteworthy given Musk’s known fondness for the token and the fact that his electric car company, Tesla Inc., already accepts DOGE payments for certain merchandise purchases.

The rise in DOGE’s price also outperformed the stagnant bitcoin prices, indicating a growing interest in alternative cryptocurrencies.

Read Next

Crypto Analyst Predicts This Altcoin Will Explode 260% In 2024, And It’s Not Dogecoin Or Shiba Inu

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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Crypto

Bitcoin prices come within kissing distance of $100,000. Should you invest now or just sit on the fence? | Stock Market News

Published

17 hours ago

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November 23, 2024

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Bitcoin prices come within kissing distance of 0,000. Should you invest now or just sit on the fence? | Stock Market News

Bitcoin prices hovered around $98,608 on Saturday on international exchanges, buoyed by the euphoria over Donald Trump-led Republican party reclaiming the White House. With its total market cap touching more than two trillion dollars, the oldest cryptocurrency has witnessed a spike of 51 per cent in the past one month.

There is hope that the Donald Trump-led US administration will adopt crypto-friendly policies when it takes over in January next year for its second term. The rally got further impetus when BlackRock’s spot Bitcoin ETF options were listed on Nasdaq on Tuesday.

Indian crypto industry insiders are naturally upbeat about this rally. Balaji Srihari, Business Head of CoinSwitch, says, “Bitcoin surged to an all-time high, signalling that the much-anticipated $100,000 milestone could be within reach- many analysts predict that this mark could be achieved as early as the end of November. Since the recent US election, Bitcoin has been consistently setting new records, encouraged by expectations of a more supportive regulatory framework and a potential national Bitcoin reserve; that can legitimise Bitcoin as a government-backed asset. BlackRock’s Bitcoin ETF debuting options trading on Nasdaq is a big sign of increasing crypto adoption.”

Apart from bitcoin, other crypto tokens too have witnessed a surge. XRP, for instance, has surged 188 per cent in the past one month, and 37 per cent in the past five days alone. Ether trades at $3,354 and BNB trades at $665 on Saturday, according to Coinmarketcap data. 

Shivam Thakral, CEO of BuyUcoin, says, “In the last 24 hours, Bitcoin reached a record high of $99,000. XRP led the charge with a remarkable 25 per cent increase, driven by renewed optimism surrounding a more crypto-friendly regulatory environment in the US. It is anticipated that Donald Trump’s win in the election will drive the implementation of crypto-friendly policies, which will, in turn, enhance market sentiment. As trading volumes rise and hopes for ETF approvals increase, the future looks extremely positive for XRP and the wider cryptocurrency market as we near the end of the year.”

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Vishal Sacheendran, Head of Regional Markets at Binance, says, “Bitcoin’s rally, fuelled in part by the optimism surrounding Donald Trump’s re-election, represents a transformative moment for the crypto and Web3 space. His administration’s support for digital assets could lead to more progressive regulations, fostering an environment conducive to greater institutional and retail investment in the sector. I believe that the broader crypto ecosystem could benefit from policies that promote blockchain infrastructure, and provide a better route for financial institutions to engage with crypto.”

Caution needed

Despite all the positive factors, crypto experts believe that investors should stay cautious and not get too carried away. It is common knowledge that bull runs are often followed by steep corrections. So, one should be cautious before getting too elated. “Amid the excitement, traders should stay cautious. Big price jumps often lead to sharp corrections, and using too much leverage could amplify risks during volatile periods,” says Srihari from Coinswitch.

“It is also important to note that in a bull market like this, investors should also remain mindful, conduct thorough research, and not make investment decisions solely based on market sentiment or hype,” adds Sacheendran of Binance.

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