ARK Invest fund manager Cathie Wood is offering outrageous predictions again. This time, Wood is reiterating a $1 million price target for Bitcoin. After several cryptocurrency exchanges and lenders filed for bankruptcy, how realistic is this target?
Bitcoin is the gold standard for the crypto market. BTC-USD needs to hold its perceived value for altcoins and stablecoins to survive.
Wood said in an interview with Bloomberg that the bankruptcy of FTX and other firms will strengthen the infrastructure for the apex cryptocurrency. To back her buy conviction, the fund manager allocated investor money into $1.46 million or 176,000 of Grayscale Bitcoin Trust.
Greyscale refused to share proof of its reserve, citing security concerns. Last Monday, Nov. 21, 2022, Greyscale traded at a massive 45% discount to bitcoin prices. Investors uneasy about Bitcoin could speculate on GBTC stock. Should confidence rebound in the sector, the discount would narrow.
Bitcoin prices need to hold their price level of $15,500 to $16,500 today. However, falling confidence in Binance, which launched $1 billion for a Crypto recovery fund, would hurt BTC prices.
When Voyager Digital filed for bankruptcy, FTX bought it. FTX bought other firms in the summer. When its liabilities exceeded assets by around 10 times, FTX filed for bankruptcy.
The $1 million target for Bitcoin eight years from now is pure speculation. Watch the near-term trading patterns instead.
