BITCOIN TO REACH US$550,000
09 December 2021
The colossal climb for Bitcoin since it first began more than a decade ago has constantly put this popular cryptocurrency in the limelight. Despite an astronomical gain from US$1 in 2011 to the current US$48,500, Bitcoin is set to reach US$550,000 as institutions pile more investments into cryptocurrency.
This is according to Cathie Wood, the famed CEO of Ark Invest, who said that institutions are always on the lookout for investments that have little correlations to traditional asset class such as stocks and bonds.
As cryptocurrency is a new asset class, institutions do not have much exposure to them and are looking to invest in them. The two largest crypto by market value, Bitcoin and Ethereum, are their top choice.
If institutions move toward holding 5% of their portfolio in cryptocurrencies over time, Bitcoin could potentially make another US$500,000 gain to reach US$550,000. This translates to an increase of more than 1,000%.
Given the past records for Bitcoin, this price target might be achievable at some point in the future. However, expect wild swings along the way before it reaches the finishing line.