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Ark Invest’s Cathie Wood said that most of the Bitcoin transactions shall be controlled by renewable energy in the future. Besides, she is more bullish on the arrival of Bitcoin ETF post the price crash.
On Wednesday, May 19, Bitcoin (BTC) and the overall market faced a massive price crash with heavy profit booking in the market. There was high panic on Satoshi Street as the fear index was at its lowest, however, still higher than the March 2020 crash. But the recent BTC price crash hasn’t perturbed the big players in the market. Cathie Wood, CEO of Ark Investment remains confident about her $500,000 BTC price target and thinks that this is a golden opportunity to buy.
Fear INDEX has reached 11 in the last 24 hours, and the level of fear is still lower than March 13, 2020 （10）. pic.twitter.com/OJJouNiKYY
— Wu Blockchain (@WuBlockchain) May 20, 2021
During her interview with Bloomberg, Wood called the market sentiment “emotional” and said that Bitcoin was on “sale”. Adding further Wood stated:
“The one thing that has changed here, however, is the environmental concerns around Bitcoin, in particular, have caused people like Elon Musk to pull away and say let me make sure that we understand this”. Wood further added “We percentage of Bitcoin mined with renewable and hydroelectric power is quite substantial”.
Interestingly, Wood also thinks that the chances of approval for the first Bitcoin exchange-traded-fund (ETF) have increased with the recent BTC price correction. “The odds are going up now that we have had this correction,” added she.
The Institutional Support Behind Bitcoin
Cathie Wood has been very popular in the investing circle with its company giving outsized returns. The Ark Flagship Innovation Fund (ARKK) has generated 45% annualized returns in the last five years. Cathie Wood has been a big fan of growth stocks and assets like Bitcoin and much vocal about them.
Looking at the current global macro-economic condition, Wood’s bets seem fair and have produced results for her company. Despite the recent price crash, institutional buying hasn’t stopped yet. There were major exchange outflows reported post the Bitcoin price correction. It means institutional giants bought the dips sending them to cold storage. The reduction in BTC supply will also help its price surge north.
$750,000,000 worth of #bitcoin was just moved off of exchanges in the last 10 minutes. Someone bought the dip. pic.twitter.com/uvHVk0i37Q
— Documenting ₿itcoin 📄 (@DocumentingBTC) May 19, 2021
On the other hand, MicroStrategy‘s Michael Saylor also confirmed that none of the accounts that they manage have sold any BTC during the crash. Lastly, the biggest market mover Elon Musk also confirmed that Tesla continues to hold its Bitcoin purchase despite the correction.