Cathie Wood says Bitcoin is going to $560k in five years 

There is a subdued mood in the air among Bitcoiners as the price of the digital currency crashed by $10,000 over the past two weeks, bringing an end to a sustained period of upwards movement.

However, fear not, Cathie Wood, star capital allocator and founder of ARK Invest, delivered news yesterday that will be music to the ears of anyone with an allocation to Bitcoin.

Wood is predicting that Bitcoin will go to $560,000 per coin in the next five years.

Wood’s price forecast is under the assumption that institutional investors allocate 5% of their portfolios into Bitcoin.

Having pulled back from record levels seen just over a week ago, Bitcoin is standing at just over $58,000, meaning Wood’s prediction would represent close to a 10x appreciation.

Additionally, when institutional adoption does happen, Wood and other analysts will know.

The blockchain’s transparent nature means that users will be able to see confirmation of the transactions going ahead in real time.

“We can tell it’s happening because of on-chain analytics,” Wood said.

An attractive proposition to investors is the fact that Bitcoin is not directly correlated to other assets like stocks, which means it could allow investors to spread their level of risk.

“The correlation is very low,” said Wood, adding that by investing in crypto “you will be raising returns and lowering risk over time”.