Cathie Wood Bitcoin Prediction: Some are saying that Cathie Wood is the Warren Buffett of disruptor and innovator stocks. Given her success thus far, they might be right.
Wood is managing an increasingly profitable collection of ETFs, and she appears to have the golden touch when it comes to choosing which of the world’s innovators and disruptors are destined for greatness.
Investors and analysts are keeping a close eye on Wood’s predictions – and more importantly, they are watching the trades she makes.
With the market taking unexpected twists and turns, everyone is looking for the best way to secure large returns. A big point of curiosity is her thoughts on cryptocurrency. Specifically, what is Cathie Wood’s Bitcoin prediction?
Who Is Cathie Wood?
Though media notoriety is relatively recent, Cathie Wood isn’t a newcomer to the world of finance.
She got her start with Jennison Associates, where she worked in senior roles such as Equity Research Analyst, Portfolio Manager, Director, and Chief Economist.
From there, she co-founded Alliance Capital, a hedge fund, then went on to Global Thematic Strategies. There, she was the Chief Investment Officer of Global Thematic Strategies for 12 years.
Her primary responsibility was to make critical decisions impacting more than $5 billion in assets.
In January 2014, Wood moved on from Global Thematic Strategies to found ARK Investment Management.
She has won a number of prestigious awards, including Markets Media’s Women in Finance – Outstanding Contribution Award in 2016 and a place on Bloomberg’s 2018 list of people across entertainment, business, finance, technology, politics,, and science who are transforming global business.
Cathie Wood’s ARK Invest ETFs
When Cathie Wood launched ARK Investment Management in 2014, she saw the opportunity in disruptors and innovators. Through her family of ETFs, her goal is to identify the ideas that will change business as usual – and the companies and industries that will benefit.
Her theory is that these types of companies are often overlooked by traditional investors who are more focused on the present quarter and small price fluctuations, rather than the big picture – and what might be possible if new technologies take over.
ARK products focus on the following areas, all of which are expected to create unprecedented change:
- Artificial Intelligence and Machine Learning
- Next Generation Data Center Solutions
- Video Games, Augmented Reality, and Virtual Reality
- Digital Wallets
- Electric Vehicles (EVs)
- Automation and Robotics
- Autonomous Taxi Services
- Delivery Drones
- Orbital Aerospace
- 3D Printing
- Long Read Sequencing
- Multi-Cancer Screening tools
- Cell and Gene Therapy
While most of these are still in development or the very earliest stages of adoption, Wood and her team are certain that they will be standard in the future.
Given her unexpectedly accurate predictions on Tesla (TSLA), investors have confidence in her assessment of the potential these technological advancements hold.
Cathie Wood’s Tesla Prediction
Surely, they said, she was exaggerating given Tesla’s share price of less than $50. As it turned out, she was wrong – but not about the share price.
It was the timing she missed.
When the August 2020 5-for-1 stock split is included in the calculation, Tesla exceeded $4,000 per share in January 2021.
Wood now says Tesla will grow another 72 percent within three years. This time, no one is ignoring her. Investors and analysts are paying close attention to her theories on innovators and disruptors.
So, what is Cathie Wood’s Bitcoin prediction? Is now the time to buy?
Cathie Wood’s Bitcoin Prediction
The price of Bitcoin has been going up long term. That, in itself, is nothing new. The cryptocurrency’s price has been a roller coaster for years. However, Cathie Wood is convinced that Bitcoin has gone mainstream, and its value will continue to increase.
She says that the current growth appears based on Bitcoin’s underlying strength – and that’s a departure from previous peaks, which appeared fueled by fad, speculation, and fringe investors creating hype.
Wood indicates that the biggest sign that Bitcoin will grow in value is that businesses are beginning to take it seriously.
Some companies are now adding Bitcoin to their balance sheets as cash. One of the most notable is revolutionary merchant services disruptor Square (SQ). Even PayPal (PYPL) is getting in on the action. In late 2020, it launched crypto buying and selling services.
Wood believes that trend will continue. If it does – if all S&P 500 companies allocate just one percent of their cash to Bitcoin – the price will hit approximately $40,000.
Is Bitcoin A Buy?
Cathie Wood and her team made a bold statement about Bitcoin, saying, “We believe bitcoin offers one of the most compelling risk-reward profiles among assets.” She isn’t alone. A survey by independent financial advisory firm Devere Group determined that 73 percent of millionaires are already investing in Bitcoin or plan to within the next 24 months.
Is there risk? Certainly. But given the support from big names in investing, Bitcoin is a smart buy for those willing to take a chance.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.