“Top performing cryptocurrency predicted to skyrocket 4,500% by Ark Invest CEO”

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Cathie Wood and her team at Ark Invest specialize in disruptive technology, with a particular focus on Bitcoin and blockchain. They believe that despite the emergence of other cryptocurrencies, there are still many reasons to be bullish on Bitcoin.

One of the key factors that could drive up the price of Bitcoin is increasing adoption by investors. Ark Invest estimates that if just $250 trillion of global investable assets were allocated to Bitcoin in 2024, the price could reach $2.3 million. This would represent a 4,500% increase from its current price of $52,000.

According to Wood, Bitcoin is an essential asset for diversification in any portfolio. Its correlation to equities is moderate, and even less with other asset categories, making it a valuable addition for risk-adjusted returns. Ark Invest’s analysts found that a portfolio with 19.4% exposure to Bitcoin in 2023 would have maximized risk-adjusted returns.

While Ark’s optimal portfolio allocations are based on past data and may not be entirely accurate, they suggest that allocating just 1% of a portfolio towards Bitcoin could still lead to significant gains. Additionally, the launch of spot Bitcoin ETFs, such as Ark’s 21Shares Bitcoin ETF (ARKB), makes it easier than ever for institutional investors to add exposure to Bitcoin.

In addition to these factors, Ark sees two more reasons that could indicate the start of another bull market for Bitcoin. First, their on-chain means indicator, which showed prices rising above a crucial threshold in late 2020, has historically signaled the beginning of a bullish market. Second, the upcoming halving of Bitcoin’s block reward in April will slow down its supply, as miners will receive 3.125 Bitcoin instead of the current 6.25.

While the current price target of $2.3 million may seem aggressive, Ark believes it is not unreasonable given the potential catalysts of spot Bitcoin ETFs and the halving. They emphasize the importance of maintaining a long-term perspective for Bitcoin investors and note that those who have held onto Bitcoin for at least five years have historically seen significant profits.

In conclusion, Cathie Wood and her team at Ark Invest remain bullish on Bitcoin and see potential for even higher prices in the future. As always, The Motley Fool has a policy of disclosure, and the author, Adam Levy, holds positions in Bitcoin.

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