Cathie Wood, the famed investor and CEO of Ark Investment Management, is a long–time bitcoin evangelist and remains bullish on the world‘s largest digital currency. According to a recent research report from Ark, the company expects to see huge gains for bitcoin by the end of the decade. The report cites several bullish factors, including the fact that despite its 77% plunge from its November 2021 peak of $69,000 to its November trough of $15,797, bitcoin has still outperformed every major asset class over longer time horizons. With Wood‘s expertise and Ark‘s research, investors can be confident that bitcoin is a strong investment for the future.
Bitcoin has been a strong performer over the past five years, with an 8.7% compound annualized return compared to 6.1% for global equities, negative 1.7% for global debt, and 7% for gold. According to Ark Investment Management, bitcoin‘s fundamentals are also stronger than ever before, with a market capitalization of $393 billion as of November 21, 2020, compared to $58 billion five years prior. This impressive growth makes bitcoin an attractive investment option for those looking to diversify their portfolios and capitalize on its potential.
Bitcoin capitulation has hit levels not seen since previous bear markets, according to Ark Invest. In 2022, the amount of bitcoin‘s supply trading at a loss peaked at 68.3%, surpassing the previous record. This indicates that the current bear market could be nearing its end, as investors are becoming more willing to accept losses and move on. As the market stabilizes, investors may start to look for opportunities to buy low and sell high
. This could lead to a surge in demand and a subsequent increase in the price of bitcoin
. With the capitulation levels reaching new highs, it may be a good time to start looking for potential investments in the cryptocurrency market.
Ark Investment Management recently released a report that suggests Bitcoin capitulation has hit levels associated with price troughs in the past. According to the report, 68.3% of Bitcoin‘s supply was trading at a loss in 2022, exceeding that of every previous bear market. The report also suggests that Bitcoin holders are more long–term focused than ever before, with 71% of the total Bitcoin supply outstanding held by long–term holders. Furthermore, exchanges have increased transparency in response to the collapse of trust in centralized crypto entities. This suggests that Bitcoin investors are confident in the long-term potential of the cryptocurrency.
Bitcoin‘s solvency is being indicated by 11 exchanges, including Coinbase Global and Binance. Moreover, its hash rate has been increasing for 12 consecutive years and is at an all–time high. According to Ark Investment Management, the digital currency could reach $258,500 by the end of 2030 in their bearish case, $682,800 in their base case, and $1.48 million in their bullish case. These predictions are based on a 40%, 60%, and 75% compound annualized gain from December 31, 2022 respectively.
