The boss of Ark Investment Management Cathie Wood has reiterated a previous prediction that the price of Bitcoin will reach US$500,000 despite the digital currency’s recent plunge in value during Thursday’s carnage in the crypto markets.
In a Bloomberg interview on Thursday, Wood said that the huge figure was still the fund’s conviction despite the recent market volatility, adding that the crypto market was currently “very emotional” so it was not yet possible to know where the bottom would be for Bitcoin.
“A lot of traders see Bitcoin dropping…so traders just dump and run…I think we are in a capitulation phase,” the Ark boss said.
Despite this, Wood said that the recent declines mean the current market “is a very good time to buy” and that Bitcoin and other cryptos were currently “on-sale”.
The CEO also said that with Bitcoin’s environmental impact having recently come to the fore following Elon Musk’s decision to suspend payments using the cryptocurrency for products at Tesla Inc (NASDAQ:TSLA), this could accelerate the adoption of renewable energy such as solar into electrical grids.
In late morning trading in London on Thursday, Bitcoin had recovered somewhat from yesterday’s lows during the market crash and was up 1.4% at US$39,836.