Bitcoin at US$400,000? ARK Invest explains how this will become reality
ARK Invest is convinced that fundamentals are currently driving the bitcoin price upwards. Moreover, the company still sees a lot of growth potential in BTC. What are the reasons for this?
ARK Invest is an American asset management company founded in 2014 by Catherine D. Wood. Currently, the company manages assets of 29.3 billion US dollars and invests in cryptocurrencies such as Bitcoin, among others.
Every year, ARK Invest publishes a „Big Ideas 2021 Report“ in which it reports on investment ideas. According to the report, Bitcoin still has enormous growth potential. After all, the asset manager believes that the BTC price could rise dramatically if Bitcoin Profit several more companies follow the example of Square and MicroStrategy this year and invest part of their capital in Bitcoin.
In addition, ARK Invest says that if all S&P 500 companies invested one per cent of their capital reserves in BTC, the BTC price would rise by about $40,000.
Fundamentals drive bitcoin price
Moreover, according to ARK Invest, Bitcoin’s current price increase is less driven by hype than it was in 2017, partly because some companies already classify BTC as a safe haven. In this regard, MicroStrategy added to its holdings yesterday and bought a total of almost 295 BTC.
If S&P 500 companies invested just 10 per cent of their capital reserves in Bitcoin, the BTC price could rise by as much as 400,000 US dollars, according to ARK Invest. To date, the number of companies investing in Bitcoin is extremely small relative to all publicly traded US companies. At last check, there were less than two dozen listed companies that have BTC on their balance sheets. But it is not only ARK Invest that believes this will soon change. Elon Musk also predicts increased Bitcoin entry by companies.